Economy

Landowners receive Sh5.5bn in new rail payout

atanas

Kenya Railways boss Atanas Maina. Kenya Railways has played down worries that the new 471-kilometre railway will not meet the 2017 completion deadline due to design irregularities. PHOTO | KEVIN ODIT

The Kenya Railways Corporation will next week start to distribute half of the Sh10 billion to landowners whose property was acquired to build a new Mombasa-Nairobi railway line.

Managing director Atanas Maina announced in Mombasa on Tuesday that Sh5.5 billion would be wired to the accounts of 2,000 landowners in Kwale, Taita Taveta, Makueni and Kajiado, putting to rest one of the sensitive aspects of the mega project.

“The funds have already been released while the National Land Commission has furnished us with their bank accounts,” said Mr Maina at a function attended by Mombasa Governor Ali Hassan Joho.

“We shall deposit the money in their accounts so that compensation can start immediately from next week.”

Private individuals own the bulk of 12,000 acres of land that State acquired for the construction of standard gauge railway (SGR), which started at the beginning of this month.

Transport and Infrastructure ministry expects to pay Sh10 billion to individuals and State agencies whose land was acquired early this year for SGR.

Kenya hopes to complete the 609-kilometre Mombasa-Nairobi portion of the regional project by March 2017. It will cost Sh447.5 billion, including financing costs.

READ: Sh10bn compensation for new railway land begins

Commenting on the recent demonstration by residents of Kwale and Taita Taveta counties over the compensation issue, Mr Maina said 98 per cent of those who had complained have agreed to the compensation.

“About 98 per cent of those who had issues over the compensation have now signed and returned their forms, meaning that they are ready to receive the money,” he said.

The new railway line will complement the slower narrow gauge network that runs to Uganda as part of an effort to cut the hefty costs of trade between East African nations.

Changame MP Omar Mwinyi, county executive Transport executive Mohamed Abbas and his Lands and Housing counterpart Francis Thoya questioned the corporation over failure to provide an Environmental Impact Assessment, employment mode and a lack of involvement of local leadership.

Mr Maina said a liaison committee composed of governors from the counties that would be affected by the project, NLC the company and other stakeholders is being formed to look into the thorny issues.