[Source: Business Daily, by Edwin Mutai]
Court battles, inheritance fight cases and family disputes have delayed release of Sh4.6 billion compensation to 660 persons whose properties were compulsorily acquired to pave the way for construction of the Nairobi-Naivasha section of the standard gauge railway (SGR).
The National Land Commission (NLC) told Parliament on Tuesday that the billions lie idle in the bank due to fights over the SGR proceeds.
The commission has wired Sh13.1 billion to 1,337 families whose property gave way to the 120Km line and it awaits Sh2.45 billion from the Treasury for disbursements, pushing the land compensation for the mega-project to Sh20.3 billion.
Kenya Railways Corporation (KRC) had earlier in the year sued the NLC for sitting on Sh17.7 billion meant for land compensation that had stalled construction of the Nairobi-Naivasha line.
The payout delay, according to KRC, has forced it to breach the May completion deadline, raising fears that the Chinese contractor could slap taxpayers with a compensation claim for delayed works.
Ms Kabale Tache, the acting NLC chief executive told Parliament that out of Sh17.75 billion it received from KRC, Sh13.1 billion has so far been disbursed to compensate 1,337 persons.
The State will have used more than Sh50 billion on property owners who ceded land for construction of SGR given the property deals in the Mombasa-Nairobi line hit Sh33 billion.
The land deals were riddled with corruption charges that led to the prosecution of top KRC and NLC staff.
Some landowners accused the NLC’s valuers of including non-existent features in targeted plots to inflate prices and fleece the public.
For instance, a semi-permanent three-bedroomed house had been changed into a bungalow with a swimming pool in one of the compensation forms.
The NLC yesterday said the protracted dispute over awards among government agencies had delayed the compensation process.
[Full article: Business Daily, by Edwin Mutai]
