Firm sues NLC for Sh1bn for ‘gifting its land to squatters’
National Lands Commission boss Kabale Tache Arero.
A private company has filed a Sh1 billion lawsuit against the National Lands Commission (NLC) for allegedly using its 124-hectare property to resettle squatters.
Memphis Ltd wants the agency to pay it the amount as compensation for its land in Takaungu that the NLC, it claims, illegally appropriated to establish the Kadzinuni Settlement Scheme.
According to the firm which is affiliated with a Mombasa-based businessman, it secured a 99-year lease for the land in January 2012 and has been paying an annual rent of Sh1.6 million.
“The land ... is ... private property and is not available for allocation ... to squatters or other third parties,” the petition filed before the Environment and Land Court in Malindi by the company’s lawyer, Mr Willis Oluga, reads in part.
The company has accused the government of violating its constitutional rights by declaring private property to be an adjudication portion and allocating it to squatters without paying it just compensation. This, it says, amounts to compulsory acquisition without following the law.
“Under section 111 (1) of the Land Act, the government and the respondents are obligated to pay to the petitioner just compensation promptly and in full for the compulsory acquisition of the property,” the petition adds.
The firm’s director, Mr Henry Obuya, in his court papers, claims that, while declaring the property as an adjudication section, the State used the land’s old registration number rather than the new one to hide the illegality.
He has termed the process as “illegal, unjustified and contrary to the law”, adding that the firm’s management was not notified of the intention to turn its property into an adjudication area for allocation to squatters and that the company was not paid full compensation for losing its proprietorship rights over the land.
Sh1 billion
“Since the State has taken over the petitioner’s property ... it is imperative for the State to pay just compensation to the petitioner promptly,” Mr Obuya says.
“It is imperative that this matter be certified as urgent so that the respondents do not proceed with the adjudication process,” Mr Obuya goes on to say.
The firm is asking for a court declaration that the NLC, the chief lands registrar, the Ministry of Lands, the director of land adjudication and settlement and the attorney-general acted illegally and violated its constitutional rights to property by declaring its land as an adjudication section.
The company also wants a pronouncement that the decision to declare and convert its property into an adjudication section amounts to compulsory acquisition of its land, hence it is entitled to compensation.
It wants the respondents barred from proceeding with the adjudication process or interfering with the title deed and its ownership rights over the suit property.
The firm also wants the State compelled to pay it Sh1 billion in compensation for the land.
