NLC paid Sh1.8bn for ‘government land’ 

The National Land Commission (NLC) paid Sh1.82 billion to acquire land on behalf of the national government despite an existing court order. 

The City Cabanas land (LR No. 209/11293/1) measuring 4.0523 hectares (about 10 acres) off Mombasa road was registered under Ms Roseline Njeri Macharia, who was paid the amount despite claims the land belonged to the government. 

The land is among 17 parcels alleged to be either on road reserves or buffer zones. It stretches from the City Cabanas interchange on both sides of Mombasa road to the Southern bypass. 

Despite its ownership links to the government, the land that was leased in 1988 for 99 years was compulsorily acquired by the NLC to provide room for the construction of the Sh60 billion Nairobi expressway. 

The 27km road project stretches from Jomo Kenyatta International Airport (JKIA) to the city’s Westlands area. 

On Thursday, the Public Accounts Committee (PAC), which is investigating the matter, learnt NLC chairman Gerishom Otachi recused himself from chairing a plenary meeting of the commission that approved Ms Macharia’s payment. 

The land agency’s commissioner Kazungu Kambi, who appeared before the PAC on Thursday, said Mr Otachi delegated the chairmanship of the plenary to the vice-chairperson, Ms Catherine Nguku, “because he was among the people mentioned as laying claim to the land”. 

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Land ownership dispute

“There were claims on social media against the chairman and the Solicitor-General regarding ownership of the land,” Mr Kambi, a former Kaloleni MP, told the committee chaired by Ugunja MP Opiyo Wandayi.

“These people went to court and are in one way or another related to the chairman,” added Mr Kazungu. 

Simandi Investments Limited LR No. 209/21698, Simion Nyamanya Ondiba and Mary Nyamanya LR No. 209/11293/1 are some of the entities and individuals that moved to court to lay claim to the City Cabanas land. 

Nonetheless, Mr Otachi would go on to sanction the payment to Ms Macharia as per Gazette Notice 3502 of September 4, 2020. 

Garissa Township MP Aden Duale demanded to know whether there was a court order before the payment was made. 

“We need to see these documents. It is likely that the court order was hidden and only produced after the payment had been made,” Mr Duale said, a claim Mr Kambi denied.

The committee also heard that Mr E Wafula, the acting Chief Land Registrar, directed that the payments be made even after the Directorate of Criminal Investigations (DCI) had launched investigations into the land ownership dispute. 

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Leased-out land

The compensation included Sh12.77 million for a two-year loss of rent from a garage and a car wash, Sh4.2 million for a two-year loss of billboard rent and Sh1.51 million loss of monthly rent from a car parking facility. 

This came even as committee members Joseph Ngugi (Gatanga), Dr Wilberforce Oundo (Funyula), Otiende Amolo (Rarieda), Dr Eseli Simiyu (Tongaren), Mr Duale and Mr Wandayi demanded that the history of the land’s ownership since 1988 be presented to the House team. 

“Did you subject the City Cabanas land to scrutiny as happened with the other parcels?” Dr Oundo posed, adding: "This was government land leased to different people and a title cannot subsist if the conditions precedent were not met."

The Land Act provides that a piece of leased-out land must be developed within 24 months, failing which the land reverts to the government. 

“Prove to the committee that the land was developed within two years of lease in 1988,” said Dr Oundo, as Mr Ngugi demanded to know how the compensation amount was arrived at. 

“It is critical that the documents supporting this compensation be provided,” Mr Ngugi said. 

Ownership of the land

But even as this happened, NLC acting Chief Executive Officer Kabale Tache, who appeared before the committee alongside Mr Kambi, maintained Ms Macharia was rightfully compensated as the land belonged to her. 

She also claimed the order was served three days after the payment had been done. 

“As an accounting officer of the commission, to approve the payment, I had the responsibility to ensure I was not paying for a public property. We did due diligence,” Ms Tache told the committee. 

Mr Wandayi demanded a certified copy of the court order showing its date of receipt and the report of the DCI on the outcome of investigations into the ownership of the land. 

Dr Oundo also demanded proof that she has been filing tax returns to the Kenya Revenue Authority (KRA) as claimed in the compensation schedule. 

“She was paid for the loss of profit and rent. These losses must match the records at KRA.

Otherwise they will look fictitious,” Dr Oundo said.

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