Fuel distributor and marketer Vivo Marketing Kenya has failed in its bid to force the National Land Commission (NLC) to deposit Sh129.7 million as security for a land compensation dispute.
The marketing firm wanted the money to be deposited in a bank account jointly managed by its lawyers, Majanja Luseno & Company Advocates, and those of the NLC pending the hearing of the appeal.
Justice Oscar Angote of the Environment Land Court however dismissed the request saying the NLC is a State organ with a low risk of default hence there was no need to deposit the amount as security.
Fuel distributor and marketer Vivo Marketing Kenya has failed in its bid to force the National Land Commission (NLC) to deposit Sh129.7 million as security for a land compensation dispute.
The marketing firm wanted the money to be deposited in a bank account jointly managed by its lawyers, Majanja Luseno & Company Advocates, and those of the NLC pending the hearing of the appeal.
Justice Oscar Angote of the Environment Land Court however dismissed the request saying the NLC is a State organ with a low risk of default hence there was no need to deposit the amount as security.
The judge further noted that the High Court has since made an adverse finding in a related case, that the title in respect to the suit property is null and void.
"Although the Court of Appeal has stayed the said decision, the decision has not been set aside," said Justice Angote.
Vivo was running a branded petrol station at the suit property and it entered into a lease with another company known as Tinek Limited.
The land was later compulsorily acquired by the NLC for the construction of the second carriageway of Athi River-Machakos turnoff road.
NLC issued an award in favour of Vivo in the sum of Sh129.7 million on January 23, 2018, for the suit land.
The award was served upon Vivo which was required either to accept the valuation or contest the decision.
On January 30, 2018, Vivo accepted the award and formally disclosed the bank account to which the said sums would be paid into. However, despite taking possession of the property, the NLC has not paid the settlement sum under the award per its statutory obligation under the Act.
Vivo argued that the award of Sh129 million should be secured by either being paid into a joint interest-earning account to be held in the names of the Advocates or deposited in court. It observed that the NLC cannot have both the property and the sums of money.
Vivo said that it stands to suffer irreparable loss with the likely change in government owing to the scheduled General Elections on the one part while the taxpayers are likely to be burdened by an Award on interest occasioned by the delay on the other part.
NLC did not respond to Vivo's application.
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