Sh50bn land reverts to State

The High Court Monday ordered more than 50 acres of land worth Sh5 billion, which was illegally allocated to five companies during the Moi era, be returned to a government department.

Justice Elijah Obaga ruled that the allocation of the land to the five companies was illegal.

The land on Enterprise Road in Industrial Area, Nairobi, belongs to Kenya Meteorological Department (KMD).

“It is, therefore, clear that the suit property was not available for alienation as at the time the defendants was allocated. The land had become alienated the moment it was reserved for KMD,” said Justice Obaga.

Ethics and Anti-Corruption Commission through Ben Murei said the land had been set aside for KMD. He said it was used to relay vital safety information to sea going vessels and information of disastrous weather to aircrafts and vessels.

The data exchange, he said, enabled Kenya to meet its obligation as a World Meteorological Organisation regional telecommunication hub.

The station ceased transmission about 20 years ago because of change in technology but there were plans to convert it into an air monitoring system, to check on air pollution in the city.

The allocation was discovered in 1999 when all government institutions and departments were directed to get titles to the properties they were occupying.

The court heard that the allocation was signed by Jotham Kilimo on November 21, 1997. He was a personal assistant to Wilson Gachanja, who was the commissioner of lands.

Mr Murei said the companies Beacon Towers, Hillbrow Traders Ltd, Brentwood Traders Pamba properties and Varun Industrial Credit Ltd, were expected to pay rent of more than Sh1 million in 30 days but it was made months later. He said the allocation was illegal because there was no presidential approval and the land was not available for allocation.

Mr Kilimo testified that he signed the grants because he could not defy orders from his superiors as he feared for his life. Mr Gachanja said the land was available for allocation and denies he had interest in the land. The companies were incorporated between 1995 and 1997, with two shareholders, Kantibhai Maganbhai Patel and Harish Ashabhai Patel.

Ms Pritibala Shah, daughter of Kantibhai later took over the running of the companies when her father died.

The court visited the land in June and confirmed that it had two blocks with eight houses for staff of KMD, transmission station and standby generator.

“One cannot have over 50 acres in occupation of a government land and claim it was an innocent investor. The company conceded under cross-examination that the five companies are not trading,” the Judge said.

He added, “If this is not fraud, then I do not know what other fraud the plaintiff was expected to prove. On this score, I do find that the defendant did not acquire an absolute and indefeasible title.”