Government to offer Sh10 billion for Ngong land on SGR route

Ongoing construction of the Standard Gauge Railway (SGR) project, section 7, currently on phase 2A, at China Communications Construction centre in Emali.[David Njaaga,Standard]

The Government has agreed to pay land owners with buildings along the Ngong-Naivasha Standard Gauge Railway (SGR) route Sh10 billion.

The settlement comes four weeks after construction of the Ngong section stalled, part of the Sh150 billion second phase of President Uhuru Kenyatta’s pet project.

Transport and Infrastructure Cabinet Secretary James Macharia‏ said yesterday talks had concluded and payments will be made to resume construction.

“Projects are stalling because of land. The SGR had stopped for four weeks between Ngong and Naivasha but talks have concluded to sort out the payment for Sh10 billion,” he said.

Combined value

The Government had estimated to pay below Sh7.5 billion for the combined value of the property along the SGR line between Tuala and Embulbul in Ngong.

However, the owners were demanding a total compensation of Sh15 billion, which was rejected and fresh valuation started.

Mr Macharia said too many projects in the country were being hindered by inflated land claims.

The SGR land, for instance, had an instance where an initial claim for three-quarters of an acre was put on an undeveloped eighth of an acre.

Going by the compensation rates, that claim would have come to Sh24 million, six times the fair value of Sh4 million.

Macharia said the Kangemi-Rironi section of Nairobi-Naivasha highway was also stalled by a Sh6 billion claim even on structures that were on road reserves.

“Some have put up structures on road reserves because they know the World Bank is very strict on its project and will not allow us to remove them,” he said.

Held up

The Athi River Machakos turnoff is also held up over a Sh6 billion land claim while the Mombasa Island-Jomvu Mariakani road is also facing a Sh10 billion compensation claim.

Housing Principal Secretary Charles Hinga said the Government is trying to establish a land value index to help standardise pricing so that it is not overvalued whenever Government wants to compulsorily acquire it, but the law is still stuck in the legislative process.

The State will also soon tax idle land based on valuations that owners place on their land rather than the low land rates currently being paid.

“If you are going to value your land at market rates when we want it, then you should pay land rates based on that value,” said Mr Hinga said.

He added that the ministry would also look at land value capture to avoid a situation where State infrastructure helps surrounding areas balloon in valuation yet the Government does not benefit from the land on which the infrastructure stands.