Delayed fee for land, which stalled completion of the Nairobi-Naivasha leg of the usual gauge railway (SGR), may very well be costing the taxpayer Sh21 million per day, in response to paperwork seen by the Nation.

A letter by the chief government officer of the Nationwide Land Fee (NLC) to the CEO of the Ethics and Anti-Corruption Fee (EACC) says the money, which quantities to just about Sh3 billion for the stand-off interval, was being accrued as fee to the railway’s contractor for idle capability and non-accessibility to the positioning.


Nonetheless, Transport and Infrastructure Cupboard Secretary James Macharia on Sunday mentioned the fee clause would solely apply if the stipulated building interval lapsed. He added that his ministry had sought the assistance of the Ministry of Inside to clear the SGR hall in a bid to keep away from the additional prices being accrued as a result of stalemate.

The contractor, China Communications Development Firm (CCCC), stopped work on the 120-kilometre railway line in Empaash, Tuala, Oloosirkon, Milimani, Rankau, Kandisi, Merisho, Nkoroi, Kangawa, Oloolua, Ngong, Kimuka and Suswa following disputes on paying house owners for his or her land.

Underneath the contract, section 2A was to value taxpayers Sh1.25 billion for every kilometre of the railway line that snakes by way of 5 counties — Nairobi, Kiambu, Kajiado, Narok and Nakuru. However the accrued funds for idle capability would inflate the entire constructing value.


Landowners in Nkoroi had claimed Sh4.2 billion earlier than the Ethics and Anti-Corruption Fee froze fee final 12 months to probe the inflation of some parcels, a scheme the anti-graft watchdog believes was masterminded by NLC and Kenya Railways officers.

Delayed compensation of landowners set the stage for an inter-agency battle in January when the Kenya Railways Company, the contracting state company, sued the NLC for stalling the method and, in flip, delaying building.

Some Nkoroi residents advised the Nation final week that that they had not been paid regardless of confirming from the EACC that their land was not below any investigation.

Ms Anne Korir, whose home was demolished on June 14, mentioned she was bounced from workplace to workplace till she confirmed from the anti-graft watchdog that her land was not amongst these below probe.

After dwelling on her quarter of an acre plot for 17 years, she watched as her house, two greenhouses and livestock sheds have been torn down regardless of not receiving a cent in compensation.


Communication between the NLC and EACC signifies that the Sh21 million-a-day fee had been in operation for some time and will have sparked Kenya Railways’ transfer to forcefully occupy land in Nkoroi two weeks in the past.

NLC performing CEO Kabale Tache Arero wrote to the EACC chief, Mr Twalib Mbarak, on June 19, 5 days after the demolitions, looking for to prioritise compensation packages for Nkoroi residents.

NLC desires EACC to disclose the standing of investigations into land parcels whose costs the anti-graft watchdog believes have been inflated.

“Within the spirit of cooperation and alternate of data and to assist NLC unlock compensation for parcels that had been sampled for investigations, the fee hereby requests that or not it’s assisted with the result of the investigations or affirmation of the standing of the identical additional to preliminary findings conveyed to it. The NLC additional requests for a joint sitting between its valuation working group and EACC valuers to alternate info on the recognized parcels,” the letter reads.


There are 136 days between January 28 when the court docket battle went public, and June 14 when the federal government forcefully took possession of land in Nkoroi, Kajiado County. Which means, in that interval, the Chinese language agency may have earned Sh2.eight billion for idle capability.

Section one of many SGR line began passenger companies on June 1, 2017 after a Sh323 billion value for the 485-kilometre line. Freight companies began in January, 2018. Compensation slowed down after EACC opened an inquiry into a whole lot of suspicious claims.

EACC believes the inflation was for lining the pockets of some NLC and Kenya Railways officers.

Yesterday, CCCC issued a press release explaining it had been given 54 months from January final 12 months to finish the development, that means that as at now, they’re inside a 36 month deadline for finishing the development work.

Kenya Railways MD Philip Mainga declined to remark because the delays are linked to compensation of land house owners, which continues to be below investigation by the EACC.

Former NLC head Muhammad Swazuri and his KR counterpart Atanas Maina have been charged with a few of their juniors for allegedly inflating land costs for section one of many line to defraud taxpayers of Sh221 million. EACC froze fee of compensation awards to permit it to probe the inflations.