Landowners Minting Millions from Multi-billion Govt Projects

Nairobi Expressway under construction in Westlands, Nairobi
Nairobi Expressway under construction in Westlands, Nairobi
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The government has over the last few years embarked on infrastructure projects worth billions around the country.

As the infrastructure projects are planned and eventually implemented, a number of landowners have found themselves smiling all the way to the bank as the government handsomely compensates them for land it wants to utilise for the projects. 

In a gazette notice on March 5, 2021, the government through the National Land Commission (NLC) announced that it was set to acquire parcels of land for the Nairobi Expressway, Likoni Floating Bridge in Mombasa, the lower Nzoia irrigation development project in Siaya and Busia Counties.

Landowners who have land along the Ksh17 Billion Nairobi Western bypass road secured millions in a compensation deal reached by the parties involved.

An aerial look at the Western Bypass road
An aerial view of the Western Bypass road
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This was confirmed by Kenya National Highway Authority(KeNHA) project engineer George Amingh who disclosed that Ksh1.15 billion had been budgeted for the landowners.

That's just the tip of the iceberg as the construction of the Standard Gauge Railway (SGR) saw the government commit billions into acquiring land. 

The Government announced that those who ceded their land for the construction of the second phase of the railway line would get Sh10.2 billion in compensation.

In October 2018, the national government released Sh7.9 billion to compensate landowners.

Compulsory Land acquisition 

The National Land Commission (NLC) is the body mandated to acquire land for government projects which is usually done through compulsory land acquisition.

This is the acquisition of land by the government for public purpose but subject to fair and prompt compensation.

Publication of the intention to acquire is done through the Kenya gazette and County gazette. A notice is also given to the Land Registrar and every person with an interest in the land.

The procedure of claiming compensation

Once gazetted the owners of the affected parcels of land are required to deliver to the National Land Commission a written claim to compensation together with a copy of identification card (ID), Personal Identification No. (PIN), land ownership documents and bank account details.

The Commission offices are in Ardhi House, 3rd Floor, Room 305, 1st Ngong Avenue, Nairobi.

A government official who spoke to Kenyans.co.ke, explains that land compensation was an intregral part in and was also budgeted for in the projects.

"The process begins with mapping out the area to known which parcels are affected and then they are gazetted. Valuation is done by the National Land Commission and the government agency gives letters of offer for compensation," the official stated.

Land surveyors at work
Land surveyors at work
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The rate of compensation done at current market prices also depends on the intrusion of the project on the land.

For example, for roads and railway line projects where the owner of the land cannot use the land again, the government will make an outright purchase of the area.

"However for some projects like electricity connectivity, the government will pay a percentage because the land still belongs to the landowner still at the current market rates after valuation," the official explained.

Law provisions for compulsory acquisitions

The Land Act 2012 provides for the conditions under which private land would be acquired and methods of such acquisition. 

Section 8 of the Act provides for full and prompt payment of compensation before vesting and taking possession of the acquired land.

The amount of compensation was determined based on an assessment of the market value of the land and improvements thereon with an addition of 15 percent of market value to cater for the disturbance.

Delays in compensation

Ideally, in most cases, compensation for land, structures, crops/trees or other assets are to be made prior to start of construction works.

But there have been instances of delays, which can be attributed to a number of factors.

"In cases where the title deed is presented and the owner of the land is present, compensation can take less time but in instances where the land is under dispute, the issues have to be settled first before any progress is made," the official explains.

 

Some projects have run into agreement hurdles. For example, the construction of Athi River - Machakos Dual Carriageway has faced delays at the Athi River junction due to land compensation issues.

Disputes on compensation

Disputes may arise in the compensation plan by the government as was witnessed in Kiambu county when a 75-year-old grandmother threatened to beat up a Chinese national over delayed payment for land that has been compulsorily acquired by the government for the construction of Kariminu Dam which is being undertaken by the Chinese contractor.

75-year-old Jane Nyambura and a Chinese girl whom she threatened to beat up
75-year-old Jane Nyambura and a Chinese girl whom she threatened to beat up
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The government had promised to pay her over Ksh3 million but she had not received the money seven months later.

She took her anger out on the Chinese lady who is said to have been associated with the construction firm.  

Government giving back land

Land acquired by the government cannot be used for private development but non-payment of compensation may lead to cancellation of the acquisition. 

The NLC may at any time revoke the acquisition and shall compensate damage incurred on persons with interest.

In other instances, the government may opt to delete parcels of land when they are no longer needed for the construction.

In case the government is unable to use the land for the intended purpose it should give priority to the original owners to acquire the land back on restitution of the full amount paid as compensation.

Ongoing construction on an access road in Thika town.
Ongoing construction on an access road in Thika town.
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