National Lands Commission chairman Muhammed Swazuri was arrested over the alleged purchase of dubious land for the standard gauge railway.
Swazuri was held at the Ethics and Anti-Corruption Commission after the DPP consented to his arrest on Saturday.
Internal correspondence from the National Land Commission indicated that the chairman authorised Ksh314 million to purchase five dubious plots for the standard gauge railway.
The NLC Chairman was arrested alongside Kenya Railways Corporation Managing Director Atanas Maina and seven others although the DPP did not reveal the charges they are facing.
Swazuri was accused of disregarding resolutions by the NLC commissioners and unilaterally authorised payments to individuals with dubious land documents.
A family in Mombasa had petitioned the EACC demanding the Swazuri and Maina be investigated over the compulsory acquisition of a piece of land, LR No MN/VI/755, located in Miritini, Mombasa.
The family of the late James Kamau Thiong'o and the African Gas and Oil Company Limited (AGOL) claimed ownership of the disputed land a matter which was before the court.
However, both the NLC and the Kenya Railways Corporation (KRC) processed the payment before they could determine the legality of the title being held by AGOL.
NLC had filed an affidavit in an environment court declaring that AGOL was not entitled to the compensation because of the dispute.
The Thiong'o family had asked EACC to investigate the duo and take action as the law requires.
“Your office is fully aware of the dispute on ownership in respect of a portion of a property known as MN/VI/755...Let us have a confirmation in writing that your office will not release the compensation before the dispute is resolved,” the family said in a letter dated January 31, 2017.
