NLC ordered to pay firm Sh713m for land seized for SGR

A tribunal has ordered the National Lands Commission (NLC) to pay Sh713 million to a construction company for the forceful acquisition of its land.

The Lands Acquisition Tribunal ordered NLC to pay Sh712,380,000 to Carlisle Development Company Limited within 45 days for the compulsory acquisition of its 7.29 hectares of land in Nairobi in 2014.

Justices Nabil Orina and George Supeyo also directed NLC to pay Sh18.7m in general damages to be computed at the rate of Sh1 million per acre and interest until the full amount is paid.

“An order is hereby issued directing NLC to pay Carlisle Development Limited within 45 days Sh712,380,000 being compensation for the compulsory acquisition of property known as L.R. No. 209/13761 measuring 7.596 ha,” said Justice Orina.

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NLC acquired the said land on October 10, 2014 for the Mombasa-Nairobi Standard Gauge Railway (SGR) project but did not pay the firm as required by law.

The commission said that it reallocated the funds meant for Carlisle Development to other projects. NLC accused the construction firm of failing to present its bank details.

NLC Principal Valuation and Taxation Officer Mariko Kalimoi said that Carlisle Development delayed and failed to attend an inquiry where they were expected to present their bank details.

However, the tribunal faulted NLC for failing in its statutory obligation to deliver notice of compulsory acquisition to the construction company.

“Even though the Respondent (NLC) attributes the failure to compensate the complainant to failure to turn up for the inquiry, the respondent has not provided any evidence that the complainant was served with any of the notices published as required,” said Justice Orina.

Orina said NLC violated the company’s rights under Article 40(3) and Article 47(1) of the Constitution of Kenya as read with Part VIII of the Land Act.

According to Carlisle Development Company, NLC declined to compensate them Sh2.25 billion inclusive of a 15 per cent disturbance compensation. The company said it suffered missed profits from the go-downs it intended to build on the suit property.

The construction firm said it was allotted the unsurveyed industrial plot on August 27, 1998, on a 99-year lease. On October 10, 2014, NLC published a notice of intention to acquire the said properties for Kenya Railways Corporation (KRC).

The firm said NLC failed to follow due process in compulsorily acquiring the suit property and promptly paying just and full compensation.

In their suit before the tribunal, Carlisle demanded compensation of Sh2,250,000,000 for the said property and interest accrued since 2014.

They also sought intervening profits and loss of income as a percentage of the compensation amount payable.

In their defence, NLC said it failed to pay the company because the funds for compensation were reallocated.