Officials linked to Sh2.7B Kenya Railways land deal dismiss fraud claims

Officials linked to the  Sh2.7 billion Kenya Railways land acquisition in Embakasi South have dismissed claims of fraud, terming the allegations misleading.

A faction of the Dupoto Dafur Settlement Welfare Society has defended the transaction, saying it was carried out transparently and with the full consent of members.

“Issues relating to land acquisition are handled between the acquiring entity and property owner(s)/trustees,” the group said in a statement.

“The State Department for Lands and Physical Planning is only invited when processing the transaction and registering the interests upon parties agreeing and transaction closed.”

They clarified that the State Department does not handle compensation funds.

“Further, PS Nixon Korir has no role in appointing lawyers for private parties, a fact the complaints know very well. The claim against Korir is blackmail.”

They also accused some of those making fraud claims of demanding huge sums from the trustees, despite not being part of the transaction.

The dispute has split the welfare society, with a lawyer-led faction accusing Kenya Railways Corporation (KRC) and National Land Commission (NLC) of collusion in the alleged misappropriation of funds. The matter is in court, with an order issued barring the publication of defamatory statements against PS Korir.

The officials behind the land sale have also written to the Director of Public Prosecutions, the Ethics and Anti-Corruption Commission, and the Directorate of Criminal Investigations to refute claims made by their rivals.

“That none of our registered members were at any time illegally and/or forcefully evicted from our land in Embakasi as alleged in the aforesaid letter,” their March 13 letter reads. “That our settlement scheme voluntarily and lawfully sold its land to the Kenya Railway Corporation with the full consent and knowledge of all the registered members on a willing buyer and willing seller basis.”

They further stated: “That our registered members moved out of the land willingly and without any coercion, threats, or force and therefore were not illegally or forcefully evicted as alleged. That no public funds or any funds meant for our scheme or its registered members were lost, embezzled or misappropriated and we have no claim against the Kenya Railway Corporation.”

The officials, Likam ole Kiambu (chairman), John Karu (secretary), and Victor Ochieng (treasurer), said the allegations are “malicious, baseless, unfounded and mere fabrications.”

“That we the officials and our registered members are willing and ready to give further information or clarify any issue any time if called upon,” they added.

The opposing faction has demanded investigations into KRC, accusing it of disbursing compensation funds to the wrong lawyers. In 2024, they moved to the Environment and Land Court to stop KRC and NLC from making further payments, citing unpaid balances. The case was later withdrawn, but they now claim the government has not fulfilled its promise.