This archive report was first published on 9 July 2019.
July 9, 2019, marked a significant day in the saga of delayed compensation for landowners affected by the Nairobi-Naivasha section of the Standard Gauge Railway (SGR). The National Land Commission (NLC) revealed in Parliament that Sh4.6 billion in compensation for 660 individuals remained idle in the bank due to ongoing court battles, inheritance disputes, and family feuds.
The NLC has disbursed Sh13.1 billion to 1,337 families whose properties were acquired for the 120km line, with the Kenya Railways Corporation (KRC) awaiting Sh2.45 billion from the Treasury to facilitate further disbursements. This brings the total land compensation for the mega-project to Sh20.3 billion.
Kenya Railways Corporation had earlier sued the NLC for sitting on Sh17.7 billion meant for land compensation, which had stalled construction of the Nairobi-Naivasha line. The delay has forced KRC to breach the May completion deadline, raising fears of a compensation claim from the Chinese contractor.
Ms. Kabale Tache, the acting NLC chief executive, attributed the delay to court cases, succession cases, family disputes, encumbrances, and lack of ownership documents. She revealed that out of Sh17.75 billion received from KRC, Sh13.1 billion has been disbursed to compensate 1,337 persons.
Ms. Tache assured the Senate committee on Transport that the payment process was ongoing smoothly, with agreements reached on payment for persons whose property values were not contentious and whose values were below Sh10 million. She also revealed that the NLC had received a cleared list from the Ethics and Anti-Corruption Commission (EACC) for persons whose values were over Sh10 million, and processing of payments was ongoing.
