Court stops Sh400m land compensation for Southern by-pass

The National Lands Commissions (NLC) and the Kenya Urban Road Authority (KURA) have been ordered not to pay Sh400 million to a company claiming ownership of a parcel of land on which the Southern by-pass has been constructed.

High Court Judge Mr Justice Samson Akong’o directed both NLC and KURA not to pay Tulip Properties Limited the sum of Sh400,755,150 in compensation for 6.5 hectares (about 16 acres) of land valued at Sh1.6 billion pending the outcome of a ownership dispute.

The land is situated along Mombasa Road/Old Airport Road Junction within Embakasi Nairobi County.

A real estate firm Tulip is battling over the parcel of land with four traders who are being defended by lawyer William Arusei.

All the parties the judge heard are claiming ownership of the land which is subject of a hotly contested suit before the Environment and Lands Court.

The four traders through Mr Arusei presented before the judge an urgent application seeking to halt any move by NLC to release the money to Tulip saying it amounts to “stealing a match” over the court process.

Ownership dispute

Mr Arusei disclosed that there is long standing ownership dispute between Tulip Properties Ltd and Messrs Mohammed Koriow Nur, Simon Kiprono Laboso, Macdonald Lijoodi Makaka and Noor Mohammed Hassan.

The judge was urged to direct that the money be deposited in an account operated by lawyers Arusei , George Oraro and a state counsel pending determination of the true owner of the land.

READ: Githunguri wins first round in land compensation case

The traders have disputed the move by the Chairman of NLC , Dr Mohammed Swazuri to purport to identify Tulip Properties as the owner of the land.

In the pleadings filed in court the traders state another judge Mr Justice George Odunga had stated that the bonafide owner of the land be identified first.

Tulip alleges that they bought the land from retired President Daniel arap Moi but the traders state under the law the former head of state could not own land as he was the custodian of all public in land.

The four allege they were allocated the land by the commissioner of lands upon application.

“Nur, Laboso, Makaka and Hassa were arrested and charged for forging the title of the land and were acquitted for lack of evidence,” Mr Arusei states in the pleadings he filed.

In his ruling the judge directed, “NLC and KURA shall not release Sh400,755,150 to Tulip nor to Nur, Laboso, Makaka and Hassahe which has been assessed as the compensation for the construction of road on the land.”

The portion that was hived off measures 2.3502 hectares.