Two traders in Nakuru have sued Kenya Railways Corporation after their companies were reportedly demolished by the state owned firm.
A report by Daily Nation on Sunday, December 6, indicated that the two businessmen who run Nakel Investments Limited and Falcon Service Station Limited are demanding Ksh400 million in compensation.
The companies claimed that their businesses were demolished on the 2.7 acres of land located along Geoffrey Kamau Way.
The court on Friday, December 4, issued an injunction preventing Kenya Railways from dealing with the land or transferring it.
Justice Dalmas Ohungo directed that operations on the land be suspended until the case by the two companies are heard and determined.
"A temporary injunction is hereby issued restraining the Kenya Railways, by themselves or their agents, from trespassing, alienating, constructing, leasing or transferring the parcels of land located within Nakuru town, pending hearing and determination of this application," ruled the judge.
In its defence, Kenya Railways argued that it repossessed the land after issuing a 90-day vacate notice to the traders.
The two companies had sued the state-owned firm demanding general damages, loss of rental income and profits as well as the costs of the suit.
Falcon is seeking a compensation of Ksh 312,094,000 as special damages. They had put up a motor vehicle yard, tyre centre and the petrol station.
Nakel, on the other hand, demanded Ksh 84,350,000 to cater for demolition of Mercy International Business among others.
Falcon had leased 1.7 acres while Nakel had developed a one acre parcel of land.
The judge directed the parties in the suit to file written submissions within 14 days noting that the mention of the case would be in January 20, 2021.
