Ruto-linked company loses Sh13b Ruai land case

The court has dismissed a claim to a multibillion-shilling land in Ruai, Nairobi, an area claimed by a company linked to a senior State official.

The land, measuring around 1,643 acres, is worth about Sh13 billion.

It was among the issues that caused a falling out between President William Ruto and his former boss, Uhuru Kenyatta.

Uhuru gazetted the contested land as a protected property meant for expanding the Nairobi sewer system

The government then maintained that the land it had been grabbed and, moved to repossess the expansive parcel by removing ''illegal" structures on it. 

Before carrying out a demolition exercise on April 23, 2020, then Lands Principal Secretary Nicholas Muraguri and his Water and Sanitation counterpart Joseph Irungu said the government was repossessing the land for Dandora Estate Waste Sewerage and Treatment Plant located in Ruai, which private entities had allegedly grabbed.

The government further claimed to have secured a Sh20 billion loan from the Africa Development Bank to finance the expansion of the sewerage plant.

Former Interior Cabinet Secretary Fred Matiang’i revoked the land allocation for private use through a June 3, 2020 gazette notice.

However, upon Dr Ruto taking over power, his Interior Cabinet Secretary, Kithure Kindiki, issued a new gazette notice on December 15, 2023, reversing the earlier directive and paving the way for sub-division and private use.

Justice Ann Omollo has reversed Kindiki's decision and directed the registrar of lands to cancel the title acquired by Renton Company Limited, as it had been acquired illegally and unprodecurally.

The judge barred Renton, a firm associated with President Ruto, from building anything on LR 12979/4 or LR 12979/1/R or selling the land, save for the portion set aside for sewerage and settling squatters.

”The second defendant pleaded that it did not know the whereabouts of the land parcel number 12979/1 claimed by the parties herein but does not give an account to contradict the history of their land as contained in the reports of the land officers produced as exhibits. In essence, the second defendant has failed to defend the root of its title and wishes to rely on the indefeasibility of the title to prove its ownership of the suit property,” said Justice Omollo.

She noted that the land belongs to the Kamunyonge Squatters who are former Embakasi Ranching employees.

Four separate cases involving the property were filed. The first was filed by James Kariuki, Simon Waithaka and Jane Gikuya in their capacity as officials of the Ruai Squatters Welfare Society. They sued Nairobi City County and Renton.

They also roped in Olum Ondum and officials of Mathare 4A Self Help Group as interested parties.

The second case was filed by Kamunyonge Squatters, led by Abdi Ali Fugicha. They sued James Gitundu and five others.

Fugisha listed Peter Sakala, Meshack Olandoh, Martin Orobi, Rose Osita, and Rose Aluso, officials of an ex-ranching self-help group, as the first interested parties. The also had Joseph Wairegi, Daniel Wanjie, and Alex Kioko, officials of Kamunyonge Gatwero Squatters Self Help Group, as interested parties.

While Kamunyonge Gatwero self-help group officials filed the third case against the now-defunct Nairobi City Council.

Fugicha had also filed the fourth case against the council.

The four cases revolved around plot number L.R. 12979/1/R.

Justice Omollo heard that the original title was registered under settlement fund trustees of Dandora Sisal Company, who then transferred it to the city council and Embakasi Ranching in the 1960s.

It was alleged that the property was split in 1996 to create 2979/1 and 2. The council then built Dandora Sewage and Treatment Works.

In 1996, it was submitted that 12979/1 was subdivided into 12979/1/R, 12979/3, and 12979/4 to the council, Offshore Trading owned by former minister Cyrus Jirongo and Renton Company Limited. It was argued that neitther did Jirongo nor the council approve sub-division, sell or transfer of the property.

The court was told that Renton were using title 12979/4 to deceive the public that they have an interest in L.R. No 12979/1/R. They contended L.R. No 12979/4 did not exist as they have carried out a search which turned negative.

In its reply to the case, the city council argued that the original parcel was 12979, which was initially 4,242.5 acres but illegally sub-divided. It stated that the government had acquired the land to develop a sewer system and other council facilities to implement the Nairobi Metropolitan Growth Strategy of 1973.

According to the council, the land remained a public utility. Its witness Stephen Gathuita Mwangi asserted that there existed L.R. 12979/4 file in their registry.

According to Mwangi, the land was split into three parcels registered as 12979/3 and measuring 2,466.8 acres, 12979/4 (1,643.25 acres), and 12979/1/R measuring 1,638 acres. Mwangi explained that the council complained and two tittle deeds were revoked. However, the revocation sparked court cases.

The council in a separate response accused everyone of encroachment.

Renton on the other hand claimed that it owns 1,643 acres. The firm also alleged that it was not aware of the original title. Renton alleged that it bought the land in 1996 from the council.

According to Renton, the council had no powers to allocate land that belonged to it.

Each side called witnesses. On one hand, Fugicha told the court that he and other Embakasi Ranch employees were living on the land until Renton evicted them.

Another witness, John Achina told the court that there was no evidence of the council allocating Renton the land.

Joseph Maina, another witness who representing Mathare 4A residents, testified that there was no documents to show how Renton bought the land. The man cliamed one James Gitundu who he referred to as a director of Custom Home Holdings Ltd chased him away. According to him, Gitundu had links with Renton company.

On his part, Gitundu claimed that he was a businessman engaged in hospitality adding that he bought shares in Renton when it allegedly bought the land but asserted that he did not know about title number 12979.

He, however, said he could not recall when he became Renton’s director. The businessman asserted that the firm used to pay rates until he ceased being a director in 2019.

Gitundu maintained that he was not aware that 12979/1 and 12979/4 had been revoked. The man further said that the revoked title had been challenged before Justice Jean Gacheche.

In his testimony, he stated that the then Mathare 4A councilor had approached Renton expressing interest.

He confirmed that he was a director at  Custom Homes adding that the sale agreement between the two was private.

Juliet Theuri, another Renton director, claimed that the firm had a clean title. Renton claimed it bought the land for Sh 18.2 million.

Justice Omollo said that the county created the mess by deciding to resettle squatters while at the same time transferring the land to Renton. She noted that the firm had not produced evidence of payment of the stand premium and the rents at the time of transfer to validate its title.

“The second defendant has not shown evidence that it indeed acquired this property for valuable consideration as it is alleging. The copy of title annexed to the report by National Land Commission show the dealings on the land that were entered in the register which are the transfer to Embakasi Ranching company in 1987 and the lease to Offshore Trading company in 1994. There is no entry of the transfer in favour of the second defendant and which fact is corroborated by the report of the chief land registrar,” judge Omollo observed.