Court orders State to pay firms Sh1.9b in SGR land row

 

The State has 21 days to pay two companies Sh1.9 billion for land taken for the construction of a railway line.

The High Court also ordered that construction of the he Standard Gauge Railway (SGR) on land belong to Mombasa-based African Gas and Oil Company and Miritini Free Port be stopped.

In her ruling Thursday, Justice Anne Omollo dismissed an application by the Kenya Railways Corporation (KR) and the contractor, China Roads and Bridges Construction (CRBC), that sought to overturn a previous order that suspended construction of the SGR.

The judge declared that although SGR is a public investment, public interest does not override the rights of an individual.

KR and CRBC had argued public interest would be jeopardised if construction is stopped, a position Justice Omollo rejected.

"It cannot be gainsaid that this matter is of great public importance. The interest of the public must however be weighed against the private rights of the individual. Even lawyers for KR, CRBC, National Land Commission (NLC) and the Attorney General had agreed the petitioners have to be compensated," said the judge.

Escrow interest

She added: "Pending the hearing and determination of this petition, the respondents do deposit the total sum of Sh519,913,977 awarded in respect of African Gas and Oil Company and the sum of Sh1,475,486,488 awarded to Miritini Free port in an escrow interest-earning account to be opened in the joint names of advocates for the petitioners within 21 days from the date of this ruling."

And by the order, the NLC must pay the money to the two companies if the Government wants the railway to be built on their land.

The two companies went to court after the Government failed to compensate them for their land. The land was seized on January 24, 2014 through compulsory acquisition. NLC awarded Sh1.9 billion for the two properties (plot number 1673, 1515, 1774) on January 7, 2016 but the money has never been disbursed.

It is only the Court of Appeal that can allow the construction to continue by suspending or lifting the orders by the High Court.

"The conservatory orders granted by this court on June 24, 2016 are confirmed to remain in force until monies are disbursed. Upon compliance with the orders, the respondents shall be at liberty to continue to undertake construction work and activities thereon as appropriate,"said Justice Omolo.

She ordered African Gas and Oil company lawyer Michael Omolo to file contempt proceedings against the contractor, who was accused carrying on with the construction despite an order stopping the works.

African Gas and Oil Company has sued Attorney General, KR, NLC and the construction company.