The owners of Kingsmil bread have demanded Sh490 million from the National Land Commission (NLC) as interest on a compensation package they were paid for a 1.1651 acre piece of land in Ruiru that is now part of the Nairobi-Thika superhighway.
Kenafric Bakery Limited, which manufactures Kingsmil bread, has sued the NLC demanding the sum, arguing that its Sh942 million compensation package paid by the NLC between June 2013 and February 2015 attracted interest, which the lands agency has refused to pay to date.
The NLC has lost its bid to have the suit thrown out after Justice Kossy Bor dismissed an objection challenging the matter.
Kenafric argued that under compulsory land acquisition laws, interest is only payable if the NLC takes possession of land before releasing the agreed on compensation package.
The NLC insists that it officially took possession of the land in May 2016 when a notice of taking possession was issued.
Kenafric, however, says it ceded possession of the land in 2012 when the NLC issued it with a notification of intention to acquire the land for road construction purposes.
Justice Bor ruled that it is necessary to hear the suit so as to determine whether NLC’s possession of the land began in 2012 when Kenafric accepted to surrender its land, or in May 2016 when the land agency issued a notice of taking possession.
“The plaintiff reluctantly accepted this offer vide its letter of May 7, 2012 and duly signed the statement accepting the award and requesting payment of the compensation,” the bread manufacturer argued.
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