The National Assembly summoned Kenya Railways bosses on Tuesday, March 7, over the alleged payment of Ksh1 billion to unknown individuals affected by the construction of the Standard Gauge Railway (SGR).
The Public Accounts Committee on Commercial Affairs and Energy noted that the details of the payment to the individuals were not submitted for audit hence creating suspicion regarding the credibility and legitimacy of the compensation.
Among the crucial details needed include the list of beneficiaries, Personal Identification Number (PIN) certificates, and title deeds from the National Lands Commission.
The query was raised by Auditor General Nancy Gathungu in her audit report which analysed financial statements from 2017/2018 to 2020/2021.
She faulted the management for not providing any supporting documents regarding the Ksh1 billion compensation.
"Land compensations under SGR Phase 1 amounted to Ksh12 billion. However, the supporting documents for compensations amounting to Ksh1 billion to Project Affected Persons (PAPS) were not provided for audit reviews," the audit report stated.
The Kenya Railways bosses are also expected to answer to reports of overcompensating Ksh8.9 million to the affected individuals.
Another issue that the Pokot South MP David Pkosing-led committee will scrutinise involves the allocation of 529 parcels of the corporation's land to individuals without consent.
As it stands, only 27 parcels of land were recovered signifying that Kenya Railways has a total of 502 parcels unaccounted for.
The parcels are located adjacent to Mombasa railway station (approximately 0.75 to one acre), within Limuru railway station and along Kikuyu railway station.
According to earlier recommendations made in the 24th Report on State Corporations by the Public Investments Committee (PIC), Kenya Railways was mandated to ensure that the recovery of the compensation.
“The committee recommends that the accounting officer for the KRC should ensure that the balance of overpayments is fully recovered within three months of the adoption of this report,” reads the report tabled in the National Assembly in June 2022.
