Payment of billions for SGR phase two stopped over fraud

Workers on the standard gauge railway. FILE PHOTO | NMG 

What you need to know:

  • The National Land Commission (NLC) says in the latest gazette notice that it has stopped payments for 1,674 parcels of land estimated at 2,544 acres in a freeze that could further delay the Sh150 billion line.
  • The irregularities come weeks after fraudulent land compensation for the Nairobi-Mombasa SGR line led to the prosecution of NLC chairman Mohammad Swazuri and Kenya Railways chief executive Atanas Maina among other senior officials of the two state agencies.

A multi-billion shilling land compensation project for the Nairobi-Naivasha standard gauge railway (SGR) has been stopped after an audit revealed the payments had been inflated.

The National Land Commission (NLC) says in the latest gazette notice that it has stopped payments for 1,674 parcels of land estimated at 2,544 acres in a freeze that could further delay the Sh150 billion line. The affected parcels of land are between Syokimau and Mai Mahiu. The irregularities come weeks after fraudulent land compensation for the Nairobi-Mombasa SGR line led to the prosecution of NLC chairman Mohammad Swazuri and Kenya Railways chief executive Atanas Maina among other senior officials of the two state agencies.

Acting NLC chair Abigael Mukolwe on Friday said that valuation had reduced claims to Sh7.4 billion but declined to disclose the initial inflated amount. The notice posted in last Friday’s gazette notice said individual landowners will be at liberty to view the new compensation awards at NLC and respective locational chiefs’ offices between November 5 to 7.

“We are expecting to receive money from Kenya Railways for the awards that will affect landowners on areas identified for establishment of substations at Ongata Rongai, Ngong and Mai Mahiu areas,” she said.

Ms Mukolwe said the revocation followed an extensive analysis of the affected parcels of land which revealed discrepancies in computation of the awards.

Disputes on compensation have derailed construction work for the past year with the Chinese contractor concentrating on other areas as they await resolution of the matter.

The controversy took a new twist last week when some landowners in Oloolua accused the NLC's valuers of including non-existent features in targeted plots to inflate prices and fleece the public of hard-earned cash.

“My semi-permanent three-bedroomed house has been changed into a bungalow with a swimming pool in compensation forms. These discrepancies are in turn causing delays yet many of us need the money to move our families,” said John Kimani, a resident of Oloolua.

About 1,100 parcels of land are earmarked for compensation between Syokimau and Ngong, but it has been difficult to move families before paying them.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.