Land question slows down Jubilee’s flagship energy, infrastructure projects
Construction works of the standard gauge railway in Voi on March 15. PHOTO | FILE
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Frustrated State agencies propose policy change to allow forceful acquisition of private property.
Cartels and complex land acquisition schemes have left the government battling the effects of missed construction deadlines and potential loses to the taxpayer through cost inflation on flagship energy and infrastructure projects across the country.
A raft of crucial projects are behind deadlines as costs balloon, triggering concern among bureaucrats.
State-owned power transmission company, the Kenya Electricity Transmission Company (Ketraco) is among parastatals that have raised the red flag that several of its projects aimed at reducing the cost of electricity by displacing expensive thermal generation at the Coast and other parts of the country have been affected.
Ketraco managing director Fernandes Barasa recently cited the 482 kilometre(Km), 400/220kV double circuit line and associated substations at Rabai and Embakasi whose second phase saw all construction works stopped within Kajiado County after the local community demanded more compensation.
The project straddling Nairobi and Mombasa is meant to boost system stability as well as aid power interchange between coastal Kenya and the rest of the country.
Similarly the construction of a 100km, 400kV double circuit line and associated substations at Ngong, Suswa, Isinya, Koma Rock and Athi River have been put on ice due to the Kajiado land owners’ demands.
While overall completion stands at 83 per cent, the contractor terminated contract, laying ground for the search for a new builder which has resulted in delays in project completion and additional costs.
The challenge of wayleave acquisition is so dire that Ketraco feels there is urgent need to legislate policy on new acquisitions, just like in jurisdictions such as Tanzania and Ethiopia where the State has unyielding power over land ownership.
In Ethiopia, for instance, land remains government’s property and the amount of compensation paid depends on its decision. And in Tanzania, the government owns all the land, making it easier to access.
As such acquisition occurs when a State agency takes property for a purpose deemed to be in the public interest, even though the owner may not be willing to sell it.
Additionally when the owner does not agree to sell to the State agency, either because of the amount of money offered, or for some other reasons, the law might authorise the agency to expropriate the land.
A study by Ethiopia Public University Bahir Dar University titled Land Expropriation and Compensation Payment in Ethiopia however criticises this approach saying this policy is not very friendly to rural households in general and the poor land holders in particular.
“With the development of national construction and the boost of urbanisation, the expropriation of country’s collective land becomes necessary. At the same time, problems on the compensation to the land-lost farmers, the resettlements, the allocation of land’s income and abuse of expropriation are getting more and more obvious,” says the study.
On the flip side Kenya’s Constitution places a lot of emphasis on fairness to land owners to make the process of compulsory acquisition more transparent.
Managed by the National Lands Commission, (NLC) the process is seen as more just and fair to the owner of land as the award of compensation or determination of amount payable is made prior to the government taking possession of the land, notes legal firm Coulson Harney.
But several State agencies now warn that many key projects could be impacted by the land acquisition troubles as a result of what they see as loopholes in the policy.
Other key projects which have faced delays include sections of standard gauge railway, dualling of key roads such Lang’ata Road, the roundabout near City Cabanas on Mombasa Road, and Lamu port upgrade works including the construction of three berths.
“Some of the projects have been delayed even up to 10 per cent of the time - not considering the increase in cost,” says Vision 2030 Delivery Secretariat (VDS) director-general Prof Gituro Wainaina.
And now pushed to the corner, the Vision 2030 secretariat suggests that the government should secure land for state projects under a land banking model to ease the implementation of projects.
This, says Prof Wainaina, would involve determining the “real” cost of land where independent valuers work with both government and land owners to ensure that the price is as it was banked.
“Other alternatives like land for land, mix of cash compensation and land, investment in equity should be explored,” suggests Prof Wainaina. In the extreme, a proposal for the forceful acquisition of private land for public use could be given serious consideration, the Vision 2030 boss says.
“This should be the last thing to do. No formal proposal has been done but discussions have already started with Ministry of Land,” says Prof Gituro.
Kenyans recently got a window into the State’s level of frustration over the dilemma when President Uhuru Kenyatta’s deputy chief of staff warned that cartels out to profiteer from the implementation of ongoing projects are inflating their costs.
Mr Nzioka Waita said early last month that the cartels have for instance infiltrated land acquisition for big infrastructure projects, inflating costs and in turn putting at risk their implementation.
“Land compensation is perhaps one of the biggest challenges posed to infrastructure projects today,” Mr Waita said.
“Where the State wants a pipeline, a road, an electricity line to pass through, there is an extortionist mentality that has pervaded Kenyans of all walks of life so that people want to be paid billions of shillings in compensation.”
The land question had raised its ugly head in May as it emerged it played a role in Uganda’s decision to route its oil exports through Tanzania after a report found the country was a cheaper and more secure option than Kenya.
Kenya plans to build a pipeline from Lokichar to Lamu. Earlier in March, Uganda’s President Yoweri Museveni and his Kenyan counterpart Uhuru Kenyatta asked experts from Kenya, Uganda and Tanzania to assess both routes but in their report, the Ugandan experts recommended the Tanga plan.
Kenya has since announced plans to soldier ahead with its plans even though Uganda’s decision not to partner with Kenya is still seen as major blow.
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