Kura acquired seven acres of KNH land with the hospital’s internal valuation of Sh4,219,257,210 for construction of Hospital Road and Mbagathi Way Link Road.
A roads agency is sitting on Sh1.9 billion in compensation money to Kenyatta National Hospital (KNH) for land it acquired three years ago for construction of a link road.
The Kenya Urban Roads Authority (Kura) compulsorily acquired seven acres of KNH land with the hospital’s internal valuation of Sh4,219,257,210 for construction of Hospital Road and Mbagathi Way Link Road.
Auditor-General Edward Ouko says Kura acquired the land through Gazette notice No 9340 of December 18, 2016 and 6441 of August 2016.
Mr Ouko said based on available information, Kura was to pay compensation of Sh1,859,297,000 to KNH for the portion of land.
“However, no compensation had been made to KNH as at the time of audit in March 2018 despite commencement of the road construction,” Mr Ouko said in a qualified audit opinion of KHN books of accounts for the year to June 2017.
The Constitution and Land Act stipulates that compensation arising from compulsory acquisition should be adequate and be paid without any unreasonable delay.
This means that Kura is in breach of the law by delaying the compensation.
The report, tabled in Parliament by Leader of Majority Aden Duale, shows that the excised land has been included in the property, plant and equipment balance of Sh11,609,470,000.
“Under the circumstance, the ownership and accuracy of the property, plant and equipment balance of Sh11,609,470,000 in the statement of financial position as at June 30, 2017 could not be confirmed,” Mr Ouko said.
Mr Ouko has repeated his questions over inclusion of four parcels of land with a total of 0.7847 hectares valued at Sh50.6 million which were excised and allocated to other parties.
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