Companies

Housing Sacco now seeks to join Telkom’s Sh15bn land dispute

telcom-ceo

Telkom Kenya CEO Mugo Kibati. PHOTO | SILA KIPLAGAT | NMG

BDgeneric_logo

Summary

  • A housing co-operative society has sought to join a case in which Telkom Kenya has sued the government over a Sh15 billion prime property in Nairobi, where the Ministry of Sports is building a modern sports complex.
  • Postel Housing Co-operative Society filed the application last week, saying it has a stake in the land having acquired 60 acres during the Moi administration.
  • The case will be heard on January 24.

A housing co-operative society has sought to join a case in which Telkom Kenya has sued the government over a Sh15 billion prime property in Nairobi, where the Ministry of Sports is building a modern sports complex.

Postel Housing Co-operative Society filed the application last week, saying it has a stake in the land having acquired 60 acres during the Moi administration. The case will be heard on January 24.

Telkom sued the Ministry of Sports accusing it of going ahead with the construction of the complex without compensating it for the land. Once complete, the facility will have four soccer fields, one rugby field, hockey and a running track.

The telco, which is partly owned by the government, moved to court accusing the state of failing to compensate it for acquiring the 60-acre land estimated to be worth Sh15 billion.

Telkom says in court documents that the Ministry of Sports and the National Land Commission (NLC) had shown the intention of compulsorily acquiring the land but has gone ahead with the construction without paying them.

And now Postel Society, made up of former employees of the defunct Kenya Posts & Telecommunications Corporation (KPTC), says 60 acres of the land belongs to the society which paid Sh21 million to acquire the parcel in January 1993. Postel says it has never been compensated for the land yet it has a stake and instead of filing a separate case, it should be allowed to join the suit filed by Telkom.

“That the intended interested party has common questions of law and fact as those raised in the petition herein, hence should be joined as a party and be allowed to file a cross-petition,” Postel says in the court documents filed on January 13.

The process for the acquisition of land started in March 2017 when the government showed interest in acquiring it for public use.

The total size of the land is 79 acres and the one in contention is 60 acres as both Telkom and Postel lay claim to it.