Property dealer demands Sh1bn compensation from KAA

Kenya Airports Authority has been hit by a Sh1 billion compensation claim for its decision to suspend a real estate project adjacent to Wilson Airport.

The property developer, Mr Patrick Kanyuira, has gone back to court seeking compensation from the authority after KAA successfully won a court battle stopping the construction of 24 houses in Nairobi’s South C estate.

The homes were said to pose security and safety risks to Wilson Airport, prompting the KAA to stop construction in September 2008 in a development that started earlier that year.

Mr Kanyuira has returned to the High Court on grounds that the 2010 judicial decision breached his constitutional rights and is seeking compensation for losses incurred from the freeze in the real estate plan.

He argues that stopping the construction amounts to appropriation of the land and unfinished homes and that KAA should compensate him.

“The petitioner states that the respondent (KAA) has failed, refused and disregarded to compensate and take out any steps as are provided for by the statute to compensate him for the losses sustained as a result of the notice and order issued on September 2008,” said Mr Kanyuira in court documents.

He is seeking Sh214.6 million for the land and unfinished homes, Sh50 million (loss of expected earnings), Sh727.7 million (loss of future earnings) and general damages to be set by the court.

Illegal takeover

The developer says approval of his building plans were granted by the city council on November 2007 and by the National Environment Management Authority in March 2008, but he failed to win the consent of the KAA.

KAA has hit back at the businessman’s claims, saying he disregarded the need for approval from the start and should bear the consequences.

In an affidavit, KAA company secretary Joy Nyaga says the businessman started construction in December 2007 and only made an application to the regulator for approval on January 10, 2008 which was never granted.

“This clearly demonstrates that the applicant (Mr Kanyuira) was the author of his own misfortune,” she said, adding that the suspension of the project does not amount to illegal takeover of the land by KAA as claimed by the investor. KAA intends to demolish the stalled buildings.

The businessman says his houses stand 460 metres from the airport perimeter fence, which is well outside the protection zone of 300 metres provided by the authority.