Pwani Oil sues land agency over Sh34 million award

Coast-based manufacturer Pwani Oil has challenged in court a Sh34.2 million award by the National Land Commission (NLC) for intended compulsory acquisition of the company’s two parcels of land where its processing plant lies.

It was undervalued, the edible oil manufacturer says.

The maker of Fresh Fri cooking oil has also sued the Kenya National Highways Authority (Kenha) and wants a declaration that the cash award in respect of the land in Jomvu area, Mombasa County, amounted to unjust, unfair and inadequate compensation.

The NLC had published in the Kenya Gazette a notice of intention for compulsory acquisition of the two parcels to build the Magongo and Oil Refinery road.

The company now wants an order of permanent injunction restraining the State agencies from acquiring or in any way interfering with its possession and ownership of the land or including equipment erected on it except on payment of fair and just compensation to be assessed by the court.

According to the company, it has valued the two properties at Sh181.1 million.

“The plaintiff, therefore, states that the defendant erred in awarding compensation in the sum it awarded and failed to take into account important matters that it ought to have taken into account in arriving at its awards,” argues Pwani Oil in suit documents filed at the Environment and Land Court in Mombasa.

The firm also says that Kenha and NLC in arriving at the awards failed to adhere to the relevant provisions of the law.

“Despite notice by the plaintiffs to the defendants to ensure just compensation before acquisition of the property, the defendants have failed to do so,” argues the company.

The NLC and Kenha have been directed to file their responses within 21 days and the application by Pwani Oil to be canvassed by way of written submissions.

The case will be mentioned on October 23.