EACC moves to recover Sh1.5 billion paid in Ruaraka land deal

The Ethics and Anti-Corruption Commission (EACC) headquareters in Nairobi. [Jenipher Wachie, Standard]

The Ethics and Anti-Corruption Commission (EACC) has begun the process of  recovering Sh1.5 billion paid as compensation for land occupied by Ruaraka High School and Drive-In Primary School after the Court of Appeal upheld a landmark ruling declaring the payment illegal, null and void.

In a statement issued on Monday, the anti-graft agency said the appellate court's judgment has paved the way for the recovery of the public funds and the prosecution of individuals found responsible for the controversial transaction.

The Court of Appeal upheld an earlier decision by the Environment and Land Court (ELC), which found that the approximately 13.5-acre parcel occupied by the two public schools had already been surrendered to the Government as a condition for the approval of the subdivision of LR No. 7879/4 and therefore constituted public land.

According to the commission, the judges ruled that there was no legal basis for the National Land Commission (NLC) to compulsorily acquire land that already belonged to the Government.

"The court held that there was no legal basis for the National Land Commission to undertake compulsory acquisition of land already owned by the government, declaring the purported acquisition and the subsequent payment of Sh1.5 billion to the landowners illegal, null and void," EACC said.

The Court of Appeal further found that the compensation amounted to a loss of public funds after concluding that the payment had been made under a mistake of both law and fact.

"Consequently, the payment of Ksh1.5 billion to the appellants was illegal, null and void. It was money paid under a mistake both in law and fact," ruled Justices W. Karanja, F. Tuiyott and W. Korir.

EACC said investigations established that the compensation money was paid to Afrison Export Import Limited and Huelands Limited through Whispering Palms Estate Limited.

The companies had sought to convince the Court of Appeal that they held an indefeasible private title over LR No. 7879/4, arguing that the portions occupied by the two schools had never been surrendered to the Government. They also sought payment of an outstanding compensation balance of Sh1.769 billion, claims that were dismissed by the court.

Following the judgment, EACC said it will now intensify efforts to recover the Sh1.5 billion paid under what it described as an irregular compensation scheme.

"Following the determination of the appeal, the Commission has resumed action on the matter and will resubmit the inquiry file to DPP. Those found culpable will be prosecuted in accordance with the law," the commission said.

The agency revealed that investigations into possible criminal culpability of public officials and private individuals involved in processing the compensation have already been completed.

According to EACC, the inquiry file had initially been forwarded to the Director of Public Prosecutions (DPP) on February 11, 2025. However, the DPP advised the commission to await the outcome of the appeal before taking further action.

The commission said it has now resumed the process and will resubmit the file to the DPP for consideration of criminal charges against those implicated.

During the investigations, EACC said it secured the original title deed and placed a caveat over the disputed land to safeguard public interest after the compensation had already been paid.

The investigations were conducted jointly with the Ministry of Lands, the Ministry of Education and Nairobi City County, whose records and technical evidence helped establish that the land had long been reserved for public use.

The commission has also called on the Ministry of Education and the National Land Commission to expedite the processing and issuance of title deeds for the land occupied by Ruaraka High School and Drive-In Primary School to protect the institutions from future ownership disputes.

The Ruaraka land saga has remained one of Kenya's most high-profile public land scandals since questions emerged over the legality of the multibillion-shilling compensation paid for land hosting public schools