Herders at the site where the Mwache Dam will be constructed in Fulugani area in Kinango, Kwale County.
Taxpayers are losing Sh8.2 million daily in penalties following delays by the National Land Commission (NLC) to compensate property owners who ceded their land for the construction of the Sh20 billion Mwache Multipurpose Dam, Parliament has been told.
The National Assembly’s Committee on Blue Economy, Water, and Irrigation heard that the contractor hired to build the Kwale County-based multipurpose dam project is billing the government Sh8.2 million daily, following the stoppage of works after demonstrations by property owners stopped the project for one and a half months now.
Ephantus Kiomotho, the Principal Secretary for Irrigation, told MPs that the delay by NLC to resolve the dispute through payment of compensation to project-affected persons (PAPs) is occasioning losses to the government and delaying the completion of the time-bound project.
“We paid Sh509 million out of the Sh1.38 billion that is required for land compensation in this financial year to the NLC in May 2024 but they only started this month to compensate project affected persons (PAPs),” Mr Kimotho told MPs.
“This payment to PAPs only started after landowners demonstrated and stopped the contractor from progressing with works. This is costing us Sh8.2 million daily.”
The commission is holding Sh237.9 million for 150 project-affected persons which could not be paid because of various reasons including land disputes and lack of title deeds.
Residents of Kinango Constituency in Kwale County last month stopped the construction works at the Mwache multipurpose dam project demanding compensation for land they voluntarily allowed the contractor to progress works pending payments by the NLC.
The committee which met the PS, representatives of the Treasury, and the NLC, heard that payments had started hitting accounts of the PAPs but construction works were yet to resume.
Kinango MP Gonzi Rai, who drew the House's attention to the stalled project that was commissioned by President William Ruto, confirmed that the payments had hit the accounts of some beneficiaries.
He said the only problem holding back the resumption of the construction works is a dispute between the contractor and employees who are demanding salaries for July when the project had been stopped.
“The contractor is refusing to pay his workers, arguing that they did not work during the period under which the landowners stopped the dam construction. On the other hand, employees are demanding salaries for July when the project had been stopped due to demonstrations,” Mr Rai told the committee vice chairperson Marwa Maisori.
Mr Kimotho pleaded with the committee to compel the NLC to make payments to PAPs to pave the way for the resumption of work.
The Ministry required Sh2.3 billion in the current financial year to compensate land owners to allow the progress of works on the first phase of the dam.
“We need Sh1 billion urgently. We have paid NLC Sh509 million to the NLC and the Treasury committee has approved our request to access Sh400 million for compensation following the passage of the supplementary budget 1,” Mr Kimotho said.
A Treasury official who represented Principal Secretary Chris Kiptoo told the committee that Sh400 million would be released at once to the State Department for Irrigation for onward transmission to the NLC for payment of PAPs.
“We have an additional Sh100 million towards Mwache Dam land compensation which was approved through Supplementary Budget 1. This brings the total amount to the project to Sh500 million,” the Treasury official said.
Timothy Kariuki, who represented NLC chief executive Kabale Tache, told the committee that the commission requires a total of Sh4.494 billion for land acquisition affecting 4674 Project Affected Persons.
He said the commission has already acquired 2386 acres while 968 parcels measuring 2978 acres are under acquisition and at various stages of land acquisition.
“The total cost of land acquisition is Sh4,494,026,931 for 4674 Project Affected Persons. The Ministry of Water, Sanitation and Irrigation has since remitted Sh2,137,007,710 for compensation of PAPs to the commission bank account for onward transmission to Mwache Multipurpose Dam PAPs,” Mr Kariuki said.
“Out of this amount, the commission had processed compensation of Sh1.89 billion for 2,589 PAPs.”
Mr Kariuki said the commission is currently holding Sh237.9 million for 150 PAPs who could not be paid because of disputes on the acquired properties, land succession cases, ongoing court cases, and incomplete documentation.
One individual, Mwadalu Mbovu Shera had 51 disputes with the NLC stalling payment of compensation for his 51 properties.
