City tycoon to get Sh600m payout in GSU land dispute

Nairobi tycoon Francis Mburu is set to receive Sh600 million after the Cabinet approved the payout over the disputed land occupied by the General Service Unit (GSU) in Ruaraka, Nairobi.

Mr Mburu won a court battle where he accused the government of the illegal takeover of 37.4 acres of land belonging two companies — Afrison and Huelands Limited — that are associated with him.

The High Court in February 2012 awarded the businessman Sh4 billion for the disputed land, but the Treasury has delayed in meeting the award.

The first tranche of compensation is contained in mini-budget tabled in Parliament by Majority Leader Adan Duale where the Treasury is seeking MPs’ nod for an additional Sh57 billion.

Afrison Export Import Ltd and Huelands Ltd moved to court in July 2011 and sued the defunct City Council of Nairobi, the Attorney General, Continental Credit Finance Limited (in liquidation) and official receiver and interim liquidator over the unlawful acquisition of their land.

The companies accused the government and the city council of allowing the GSU and other parties to occupy their land without full compensation.

The GSU officers occupy 380 houses that were initially built for employees of defunct Kenya Posts and Telecommunications Corporation (KPTC), now Telkom Kenya.

The government claimed to have purchased 17.8 acres of the 37.4 acres for Sh64 million from KPTC in the 1980s.

No compensation was paid for the takeover of the 20-acre piece of land where the GSU is now housed, prompting the legal fight.

“It is not clear from the record how KPTC assumed ownership to purport to sell the said property. I hold that KPTC could not have passed and did not pass on to the third defendant any title. Accordingly, I hold that the property the subject of the suit is entire 37.4 acres comprised in the title of the suit property, that is, LR No 7879/24 and the compensation sought shall be on that entire property,” ruled Justice Alfred Mabea.

He, however, threw out a demand by the two firms to have the government pay Sh1.67 billion in rental loss for the period it has been occupying the land.

In arriving at the compensation claim of Sh4 billion, Mr Justice Mabea took the mean of three different valuations of the property — Camp Valier’s (Sh6.45 billion), Clayton Valier’s (Sh3.1 billion) and Lloyd Masika’s (Sh2.7 billion).

Mr Mburu, a land dealer, was demanding Sh12.2 billion in compensation.