Firm loses Sh65m compensation claim against Ketraco

The Environment and Land Court judge noted that the firm's ownership of the land had been challenged by Ethics and Anti-Corruption Commission (EACC) and title deeds to the parcels remained cancelled.

Ketraco said the mother title of the land had been revoked by the National Land Commission through a Gazette Notice in February 2019, but the decision was challenged and the matter pending in court.

The corporation said whereas it had offered to pay the firm for the properties acquired, Mr Muturi and Prigal Ltd failed to provide original documents to facilitate the compensation.

The court was told that Mr Muturi, who said he was a director of the firm, failed to provide the original title deeds, identification and other documents necessary for processing of easement agreement and eventual payment.

The judge said that being a limited liability company, Mr Muturi was required to demonstrate that he had been authorised by the firm, through a resolution by the board of directors, to institute the case.

"I thus find that the 2nd Plaintiff (Muturi) who was not in any way associated with the 1st Plaintiff (Prigal Ltd), as either a shareholder, member or Director of the company, had no authority to act for the 1st Plaintiff and neither was this suit sanctioned by the 1st Plaintiff if at all it existed," said the judge.

Mr Muturi said he had provided copies of the relevant documents as set out in the letters of offer for wayleave compensation to Ketraco.
Ketraco said in the absence of the documents, they could not proceed with the preparation of the easement.

"In the present case, I find that the Plaintiff did not discharge the burden placed on them as provided for by the law," said the judge

And although the corporation had accepted the offers, it had through deceit, false pretense and breach of contract, constructed the power lines, promising to pay them.

Mr Muturi, a civil engineer explained that Ketraco visited the company between 2019 and December 2020 Ketraco, seeking permission to construct their transmission lines.

He said at the time of the negotiations, there had been buildings on the said parcel of land, including an office, go downs, storage facility and a water tank. The land was about 20 acres.

He submitted that Ketraco officials delivered the letters of offer and the firm gave out copies of their titles, and copies of their identity cards, among other documents.

He said they later learnt that the titles had since been revoked and they moved to court to challenge the cancellation.

Mr Muturi said, the firm had earlier acquired an adjacent land that used to house a children's home.

The second parcel, he said, had classrooms, playground, dormitory, workshop, kitchen, water tank and a perimeter wall. The land too, was acquired by Ketraco for the wayleave.

Ketraco opposed the case saying the ownership of the land was brought to their attention by the EACC.

According to EACC, the land belonged to the defunct Kenya Agricultural Research Institute (Kari) now Kenya Agricultural and Livestock Research Organization (Kalro).

And since they were still constructing the line and the people were obstructing the contractor, they had to sit down with them and issued offers for compensation.

→ [email protected]