Coalition divided over plan to seize private property

By Jibril Adan

The Standard Group has dismissed claims by two ministers that investors developed plots along Mombasa Road and Waiyaki Way targeting State compensation.

Ministers James Orengo (Lands) and Franklin Bett (Roads) on Wednesday claimed some owners of the multi-billion-shilling business premises along Mombasa Road built in anticipation of compensation by the Government.

Unable to compensate

But the ministers failed to tell Kenyans the businesses they are referring to were worth more than the Government can afford to pay.

About two-thirds of The Standard Group plot is earmarked for forced acquisition. [PHOTO: STAFFORD ONDEGO/STANDARD]

Government Spokesman Alfred Mutua has already said the plans the ministers were referring to were shelved partly because the Government was not in a position to compensate owners of the buildings if the plan went ahead.

While Bett claimed the buildings were constructed after 2008, when the plan they are using to support the Gazette notice was drawn, The Standard Group Centre was in use by early 2008.

Yesterday, Standard’s Deputy Chairman and Chief Strategist Paul Melly said: "We wish to set the record straight that, being a Public Listed Company, The Standard Group investments were neither speculative nor constructed on land designated as road reserve for future road expansion or any public development for that matter."

Mr Melly said the group was not aware of any official record or previous notification that cautioned investors of "the intention of Government to reserve any corridor whatsoever other than the gazetted road reserves for future road expansion. The official record at the Lands offices confirms this fact," he said.

Melly said Orengo and Bett were free to visit The Standard Group Centre to verify for themselves that if 85 metres of the land is taken over by Government it will "leave nothing remaining of our newsrooms, radio and TV studios and Print Solution Production Facility".

Obliteration of operations

The 85 metres is the total of 72 metres to be taken by force and 12 more the premises would have to push back to create a reserve for the new road.

"This is what informs our view that the consequences of the intended acquisition will lead to direct obliteration of our operations as a media house," said Melly.

"We urge the Government in their collective wisdom to end this discourse by de-gazetting the intended demolition in view of the substantial negative collateral socio-economic impact and enormous setback as well as negative impact on Kenya’s investment environment."