Court freezes use of Sh7b World Bank loan over land compensation row

Environment and Lands Court has frozen Sh7 billion loan issued by the World Bank, which is part of Sh100 billion meant for the construction of 730km road traversing Isiolo, Garissa, Wajir and Mandera counties. Justice John Mutungi barred the Kenya National Highways Authority (KeNHA) from using or releasing the money after questions were raised about how the money ended up with the authority and who the beneficiaries were. "An interim a conservatory order is hereby issued restraining the first respondent and the fourth respondent from releasing the compensation and or disbursements of funds by to the projected affected persons (PAPs) by the Horn of Africa Getway Development Project and the construction of Isiolo -Mogodashe-wajir-Mandera road pending the inter-parties hearing and determination of the petitioner's application," ruled Justice Mutungi. Osman Mohamed and Fardowsa Hassan filed the case against KeNHA, NLC, the National Treasury, and 21 government officials in what they claim is an illegal conspiracy to deny them compensation. Their lawyer, Mohammed Duwane, argued that the government agreed to compensate and resettle all the affected persons. At the same time, Duwane argued that it was strange that the loan had been sent to a different entity, as it was meant to be wired to the National Lands Commission (NLC) for compensation and resettlement. The lawyer said no one has to date been gazetted as a recipient of the money as required by the law. He argued it was impossible to account for how the money would be spent or who the beneficiaries are as the exercise is shrouded in secrecy. "For the avoidance of doubt, the Cabinet Secretary for Roads and Transport has never published or issued the requisite letter of intent for the acquisition of land for the Horn of Africa Getway Development Project a s procedurally required in law instead it was the 1st respondent Director General issued the letter of intent in flagrant violation of the law," said Duwane. The lawyer said that the NLC, which is mandated to carry out compulsory acquisition on behalf of the government, was meant to carry out this exercise. He questioned how the money ended up with KeNHA saying the authority had informed his clients that it would only resettle them elsewhere without compensation. "The impugned decision and process of acquisition of land by Kenya National Highways Authority and disbursements of funds to the project affected persons (PAPs) is not only unconstitutional and illegal but also shrouded with secrecy and is being undertaken contrary to the procedures underpinned in the Constitution and Land Act," argued Duwane. The lawyer said sometime in 2020, the government together with the World Bank and the African Development Bank (ADB) the Horn of Africa Gateway Development Project sought to enhance connectivity and transport between Kenya, Somalia and Ethiopia. Duwane claimed that the government borrowed Sh7 billion from World Bank for compensation and resettlement of persons affected by the project. The lawyer argued that the said money would end up being paid by Kenyan tax payers. He asserted that Kenha has no role in acquiring land on behalf of the government. Mohamed in his supporting affidavit said he has never been invited for public participation for on disclosure of how the money will be spent. He claimed that KeNHA had started the valuation process despite lacking powers to do so. "The impugned process of valuation by the 1st and 2nd respondents has been tainted with illegality, coercion and threats to the project affected persons and the said persons have been forced to accept the undervalued awards by the 1st and 2nd respondent valuers and agents," said Mohamed.

Court freezes use of Sh7b World Bank loan over land compensation row

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Court freezes use of Sh7b World Bank loan over land compensation row

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