Parliament investigating Sh500 million Standard Gauge Railway (SGR) payouts

Parliament is investigating claims Sh500 million may have been paid out irregularly as compensation for land acquired to build the Standard Gauge Railway (SGR).

Lands committees of the National Assembly and Senate are investigating alleged fictitious payments by the National Land Commission (NLC) and the Kenya Railways Corporation (KRC). 

This follows complaints by people who claim compensation was skewed even after their properties were taken.

Also, a KRC audit has raised concerns over alleged questionable payouts and blames NLC for the irregularities.

The report unearths how payments were made to unknown people and compensation inflated in some cases.

Even worse, there are those whose names are not in NLC's master list or KRC payment schedule yet their properties were taken.

In its report, KRC is concerned with the double payments of Sh1.09million and Sh3.5million said to have been paid to two wrong people. It is also concerned over what it terms irregular payment at Manyani and Mbololo. At least Sh11.3million was paid without identifications and names as well as payment of Sh9.8 million, among others are troubling KRC.

irregular compensation

Valuation of a sisal plantation, resulting in a variance of Sh337.2 million and alleged irregular compensation of public land of Sh43 million are some of the issued to be investigated.

NLC chief executive officer Tom Chavangi told The Standard he could not comment on the report.

"That report you are referring to is a draft and I cannot comment on it until when it's finalised," he stated.

George Oner, a member of the National Assembly lands committee, said although KRC's report is just a draft, it forms a basis for investigations to establish whether the compensation process is above board.

"We are inviting the two agencies to appear before us on a yet to be agreed upon date to shed light on this matter. There are complaints that must be substantiated," said Oner.

He added: "The committee has seen the report and we will use it to frame questions to both KRC and NLC. There is the issue of huge disparity in the compensation of sisal farms at the Coast and the equal payment of all lands in Voi despite the size."

The SGR compensation issue has been outstanding for a while and the two agencies have shifting blame, with NLC claiming it is KRC that is mandated to make the payment.

In its report, KRC questions payments allegedly made to the wrong people, yet NLC has details of the deserving beneficiaries.

It is the compensation trail that undeserving Kenyans were reportedly paid Sh3.5 million, 14 unknown people got Sh 5.1million and 16 others with only one name pocketing Sh11million. Also, there was an alleged over-payment of Sh1.09 million, the report further says.