Ruaraka land saga: EACC seeks to recover Sh1.5bn 'unlawfully' paid to two firms

He stated that EACC had forwarded an inquiry file to the DPP in 2025, but the DPP deferred a decision pending the outcome of the appeal challenging the ownership of the disputed land.

"Following the determination of the appeal, the Commission has resumed action on the matter and will resubmit the inquiry file to DPP. Those found culpable will be prosecuted in accordance with the law," Mr Mohamud said in a statement.

The announcement shifts the focus of the long-running Ruaraka dispute from ownership of the land to accountability for the contested compensation that saw Afrison Export Import Ltd and Huelands Ltd receive Sh1.5 billion.

The payout was the first tranche of Sh3.2 billion compensation for 13.5-acre land occupied by Ruaraka High School and Drive-In Primary School. The companies were to receive the balance of Sh1.7 billion later.

Last week, the Court of Appeal upheld a 2019 Environment and Land Court’s decision that the payment lacked any legal foundation. The court said this was because the land occupied by the two public schools had already become public land through the subdivision process decades earlier.

The appellate judges held that the State could not compulsorily acquire land it already owned and declared the payment illegal, null and void.

Welcoming that judgment, the EACC said the verdict vindicated years of investigations into allegations that public funds had been irregularly paid out.

"The judgment affirms the findings of investigations conducted by the Commission into allegations of irregular compensation relating to the portion of the land measuring 13.5 acres on which the two public schools stand," Mr Mohamud said.

According to the commission, its investigations established that the land had been surrendered to the Government free of charge as a mandatory condition for approval of the subdivision of the parent parcel registered as LR No.7879/4.

"Consequently, the land ceased to be private property and formed part of the public utilities reserved under the approved subdivision scheme," Mr Mohamud said.

The Court of Appeal reached the same conclusion, finding that the compulsory acquisition undertaken through the National Land Commission had no legal basis because the schools already stood on public land created through the approved subdivision scheme.

The judges said the Sh1.5 billion payment was "money paid under a mistake both in law and fact."

The commission disclosed that it secured the original title deed during its investigations and registered a caveat against the property to protect public interests after the compensation was paid.

No more obstacles 

It said investigators worked with the Ministry of Lands, Ministry of Education, Nairobi City County and other government agencies whose documentary records and technical evidence helped establish the status of the land.

The criminal investigations had previously stalled because the ownership dispute was still pending before the Court of Appeal.

Mr Mohamud said the appellate judgment had now removed that obstacle, allowing the commission to reactivate the case.

The EACC also called on the Ministry of Education and the National Land Commission to facilitate the processing and issuance of title documents for the land occupied by the two schools.

"EACC advises the Ministry of Education and the National Land Commission to take the necessary measures to secure the public interest by facilitating the processing and issuance of title documents for the land occupied by Ruaraka High School and Drive Inn Primary School to safeguard the schools' occupation and use of the land," the statement said.

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