City Hall may have lost Sh250m in land payment

Office of The Governor, Nairobi City County. [Samson Wire, Standard]

Nairobi City County could have lost Sh250 million in irregular payment for a piece of land located in Industrial Area.

The payment was carried out in the 2019/2020 financial year, according to investigations by the Ethics and Anti-Corruption Commission.

The findings are part of the EACC quarterly report (January 1, 2024, to March 31, 2024) published in the Kenya Gazette on May 17, 2024.

The report states that in 1993, a local company acquired the farm legally and it has developed with time, with crucial utilities including schools and health centres.

However, the commission’s probe established that in 2014, the company filed a civil suit seeking orders for compensation and vacation of the land by the Nairobi City County Government.

The company wanted the County out since public utilities were developed on the land by the county. EACC stated that their probe established the County had entered into a consent with the company that owned the land.

“The consent was adopted by the court and a decree was thereafter issued. One of the conditions of the decree was that the company was to be paid Sh250 million,” the report states.

EACC established that on July 17, 2020, the County paid the company the money.

“The payment was irregular since the title of the land in question had been charged to a bank for a sum of Sh1.6 billion. This meant that the company was paid yet the land was charged,” EACC reported. 

EACC stated that on February 13, 2024, a report was compiled and forwarded to the Director of Public Prosecutions with the recommendation to charge some individuals. They include the director of the company, county attorney, and director of legal affairs.