Telkom Kenya has filed legal proceedings against the Kenyan government in 2022, alleging unlawful property deprivation over a 60-acre Ngong Road site valued at Sh15 billion. The dispute risks halting construction of a sports complex that was nearing completion when court intervention occurred.
Land Acquisition and Legal Context ¶
The telco claims the Ministry of Sports and National Land Commission (NLC) failed to compensate it for land intended for compulsory acquisition. Telkom argues the government's actions violate constitutional protections under Article 40 by depriving it of property without proper compensation.
The land's ownership history dates back to 1993 when Kenya Posts and Telecommunications Corporations (KPTC) transferred part of the site to Postel Housing Cooperative Society Ltd for worker housing. KPTC's dissolution in 1998 led to ongoing disputes over the property, with Postel later transferring its interest to Exclusive Estates Ltd in 2009 without Telkom's knowledge.
Construction Halted by Legal Rulings ¶
A December 2021 court order restrained contractor Dallo Holdings from proceeding with construction on the site. Telkom alleged the contractor ignored the directive, continuing excavation and site office setup. The court had previously mandated a status quo to prevent unauthorized work ahead of a January 24 hearing.
The Sh600 million sports complex, featuring four soccer fields, a rugby pitch, and facilities for hockey and athletics, began construction in August 2020. Its completion has been delayed by overlapping legal battles over land ownership, including a 2019 arbitration award nullified by the High Court in 2020.
Historical Disputes and Ownership Challenges ¶
The land has been involved in multiple legal conflicts since 2001, when Exclusive Estates Ltd filed a case against Postel over development fees. In 2017, the NLC published a Gazette Notice outlining the government's intention to compulsorily acquire the land for informal Jua kali operations, a process Telkom later challenged.
Telkom's ownership structure has faced scrutiny, with the government reducing its stake to 40% while 60% remains with British firm Helios Investment Partners. The company continues to contest claims to the Ngong Road land, citing incomplete compulsory acquisition processes dating back to 2017.
