This archive report was first published on 18 August 2019.
On August 18, 2019, a report by the Auditor-General Edward Ouko revealed that the Kenya Railways Corporation (KRC) paid out more than Sh1 billion to property owners who lacked crucial documentation during compensation for the construction of the standard gauge railway (SGR).
The audit showed that the money was paid to individuals who did not hold requisite documents such as national identity cards, Kenya Revenue Authority personal identification number (PIN) certificates, and title deed surrender from the National Land Commission (NLC).
The payments were part of the compensation for land acquired for the construction of the Mombasa-Nairobi section of the modern rail line.
According to Article 40 of the Constitution, compulsory acquisition is allowed, and the Land Act requires public bodies acquiring private or public land to deposit the compensation money with the NLC.
The commission determines payments to affected property owners after undertaking a valuation.
Auditor-General Edward Ouko's report on the KRC books of accounts for the year to June 2018 showed that the SGR land compensation effected between December 2014 and October 2016 had several inconsistencies.
He said that included in the work-in-progress value of Sh523,946,281,115 is Sh12 billion incurred on land compensation under SGR Phase 1.
“Of this amount (Sh12 billion), Sh1,043,439,889 was paid out to project affected persons without the requisite documents such as national identity cards, Kenya Revenue Authority personal identification number certificates and title deed surrender from the NLC,” Mr Ouko said.
He also raised concerns about the failure by the Kenya Railways to access Sh204.5 million that is locked up in the collapsed Chase Bank Limited.
