Kenya's new millionaires in Sh8 billion railway cash payout

Construction of the first Standard Gauge Railway camp site at Ngwasheni in Mariakani. (PHOTO: Omondi Onyango)

Kenya’s newest millionaires will start emerging today as the Government begins compensating landowners on the route of the multibillion shilling Standard Gauge Railway.

The National Land Commission (NLC) announced on Saturday it would begin paying those whose land was acquired to make way for the railway, with at least Sh8 billion set aside for the bonanza.

Many of the landowners have never seen the kind of money that will suddenly swell their bank accounts as Phase 1 of the project gets under way.

From Mariakani to Voi, Mtito Andei to Kiboko, Kiboko to Athi River, Mombasa to Mariakani and Athi River to Embakasi, local economies will get a boost from the windfall as landowners cash in.

But those affected between Athi River and Embakasi as well as Mombasa to Mariakani will wait a little longer as Kenya Railways (KR) said it was yet to complete the route mapping.

"Mombasa to Mariakani design and route mapping is almost completed. Gazettement will be done as soon as the exercise is finalised. Compensation for the project-affected persons is expected to be undertaken soon after the technical and legal processes are concluded," said KR in an advert published by Managing Director Atanas Maina in The Standard on Saturday.

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The same applies for the stretch from Athi River to Embakasi. Those affected are supposed to verify their bank accounts with NLC to get paid. It is the largest such compensation since independence.

"Mariakani to Voi: Payment process will commence on Monday, December 1, 2014," stated the advert.

The notice explained that the National Treasury, through the Ministry of Transport and Infrastructure, had released the land compensation payments.

"The NLC, jointly with KR, are in the process of finalising the disbursement to the affected persons in various sections," read the notice.

The compensation schedule covers areas in five counties namely Mariakani, which has sections in Kwale and Kilifi counties, Taita Taveta, Makueni and Machakos.

Yesterday, NLC Chairman Muhammad Swazuri said Sh8 billion had been set aside to compensate landowners but added: "I cannot give you specific details and amounts for each section. What I can tell you is that we will spend Sh8 billion for the compensation. I am out of the office today but will be able to give you those specifics tomorrow (today) when I have the file with me," Mr Swazuri said.

"Payment will commence within the first week of December, when the verification process is expected to be complete," added the notice.

Those affected in areas between Kiboko and Athi River will also receive their money before the end of the year.

COURT ORDER

NLC has already handed over the payment schedules for approval and payments will be made before the close of this year.

The processing of payments is expected to defuse raging protests by both residents and political leaders from the affected areas who had opposed the project, claiming the Government had hoodwinked locals to give away their land without proper compensation.

Already, clearing of the project site has begun, but residents in other areas like Mariakani and Samburu in Kwale County last week protested against the move, demanding compensation first.

A fortnight ago, the High Court lifted an order stopping construction of the railway following a case filed by Kibwezi West MP Patrick Musimba under a certificate of urgency through lawyer Kethi Kilonzo, who said Kibwezi residents whose land had been compulsorily acquired by the Government had not been compensated adequately.

But Justice Charles Kariuki, while lifting the orders, maintained that weighty matters had been raised and referred the case to Chief Justice Willy Mutunga, who is expected to appoint a three-judge bench to hear the case.

"This court notes there are many parties involved and anything which may stall the project should be ironed out. The orders issued earlier are hereby lifted and I refer this case to the Chief Justice to appoint three judges to try the case," ruled Kariuki.

Yesterday, Kinango MP Gonzi Rai, whose constituents have also raised concerns over the delays in compensation, said the start of the payments would ease tension among the communities affected.

"We agreed to allow construction work to start pending compensation but the delays have created tension, with some residents becoming impatient," said Mr Rai.

 COCONUT TREES

He said the burden was on NLC to make sure the residents were compensated adequately to deter any disruption of the project.

The delays in compensation have been largely due to differences over the amount to be paid out and the properties to be factored in the payments.

Some residents in Mombasa, Kwale and Kilifi counties affected by the project had demanded payment for coconut trees and even burial sites. On October 23, President Uhuru Kenyatta was told compensation for 158 kilometres of land acquired by NLC for construction of the railway was being finalised.

Presenting a report on the status of the project to the President at State House in Nairobi, Transport Principal Secretary Nduva Muli said another 133 kilometres of land belonging to the Kenya Wildlife Service had been handed over to the contractor and NLC was acquiring an additional 142 kilometres.

Saying the Standard Gauge Railway was a national project, President Kenyatta said Kenyans from all parts of the country should be allowed to apply for related sub-contracts.

He said the agreed 40 per cent minimum quota for local industries to supply materials for the project must be strictly adhered to so Kenyans could benefit.