Talanta Stadium land saga deepens as court blocks telco bosses prosecution

Talanta Sports City stadium in Nairobi during inspection by President William Ruto and Sports CS Salim Mvurya, on April 11, 2025. [File, Standard] 

The controversy over ownership of the land where Talanta Stadium sits continues in the corridors of justice,­ with the High Court blocking the prosecution of Telkom Kenya bosses in a row over the surrender of Sh15 billion worth land. 

The mobile service provider’s chief executive Mugo Kibati and directors Michael Ghossein, Loise Allella, Eddy Njoroge, Jinaro Kibet, Dorcas Kombo, and Sayyid Said moved to court seeking to block a private prosecution over the 60 acres of land on Ngong Road. 

They argued that Postel Housing Co-operative Society Ltd and Stephen Magoma intended to prosecute them privately over the prime property despite the Environment and Lands Court (ELC) affirming that the land belongs to Telkom. 

Justice Chacha Mwita issued the orders, noting that it would be unfair to charge the officials before the magistrate’s court while a pending case is before the High Court. 

He said they would be left in a precarious situation if the case succeeded.

“This leaves a factual situation where they may be called upon to take plea anytime which will change the character of their case as they await hearing and determination of their appeal. This, in my view, is real and foreseeable loss or prejudice that cannot in any way be remedied if stay is declined and eventually the appeal succeeds,” said Justice Mwita. 

On the other hand, the Commercial Court in Nairobi struck out Exclusives Estates Ltd’s case against Telkom and Postel on January 17 this year, .

Francis Mburu Mungai, who is known for his involvement in the Ruaraka land saga, owns Exclusives.

Justice Njoki Mungai agreed with Aftraco Limited, a firm linked to the family of Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Joho and the arbitrator in the case Jan Mohammed, that events had overtaken the case filed by Mburu as the Environment Court had rendered its judgment on July 17, 2023, in favour of Telkom.

Lands Court Judge Oguttu Mboya directed that Telkom should surrender the title to the Chief Lands Registrar for cancellation and issuance of a new title in favour of Ministry of Sports as it had received compensation.

“In any event, in default to comply, the Chief Land Registrar would still be at liberty to cancel the certificate of title, given the extent of developments that have already been undertaken thereon, using public resources,” said Justice Mboya.

In 2021, Telkom and Aftraco Limited sued the AG over the government’s move to ­acquire the land to build Posta Sports Grounds compulsorily.

In the case, the parastatal also roped in Sports, Culture and Heritage ministry, arguing that the compulsory acquisition was illegal.

Telkom acquired the contested land from the defunct Kenya Posts and Telecommunication Corporations (KPTC).

“The suit property is currently valued at approximately Sh15 billion and the petitioner (Telkom) is apprehensive that should this honourable court not grant the orders as prayed herein, the first respondent will continue to illegally construct the Posta Sports Grounds in further deprivation of the petitioner's constitutional right to property, thereby causing the petitioner irreparable loss and damage that is not capable of being compensated by an award of damages,” argued Telkom.

Telkom claimed that it had protested several times to the Sports ministry but the Cabinet Secretary did not respond.

At the same time, the telco argued that it had not been compensated before the takeover.

“The petitioner was surprised to learn that on June 10, 2020 the first respondent (Sports ministry) invited tenders for the construction of Posta Sports Grounds on the suit property without its consent or following the compulsory acquisition process,” court papers read.

The papers further read that earlier, on September 29, 2017, Ministry of Public Service, Gender and Youth Affairs gazetted the same land for compulsory acquisition.

The intent was to establish jua kali operations. According to Telkom, the same property had been claimed by Aftraco Limited and Exclusives Estates Limited.

On the other hand, Aftraco submitted that although Telkom remained the lawful and registered proprietor of the suit property, they signed a sale deal on July 5, 2011 over the same.

The firm further stated that the two parties executed a deed of settlement dated August 1, 2018 where it was agreed that Aftraco would be entitled to a portion measuring 47.4 acres out of the suit property.

It asserted that Telkom owned the land but it had a legitimate interest owing to the sale agreement and deed of settlement.

In a separate case between Exclusives, Telkom and Postel Housing Cooperative Society Limited, it emerged that  KPTC had entered a deal with Postel to sell 60 acres of the land at a cost of Sh 21 million.

This agreement was on January 19,1993. Postel intended to build houses for Telkom employees.

Nine days later, Postel signed an agreement with Exclusives to build the houses, but the project stalled in 1995. Therefore, it was not completed, sparking a case.

In the meantime, Postel assigned its interest to Exclusives in a consent order signed on May 27, 2011. After arbitration, Exclusives was awarded Sh21 million. 

On the other hand, Telkom struck a deal with Aftraco on July 5, 2011 for the sale of the same property at a cost of Sh1.5 billion. Aftraco paid Sh152 million as 10 per cent deposit.

However, the deal fell through along the way, prompting Aftraco to file its case.  It also sought to join the case filed by Exclusives.

Telkom challenged the Sh21 million awarded to Exclusives.

In the case, Telkom argued Postel illegally transferred the land, which was then worth Sh6 billion, to Exclusives at a throwaway price of Sh21 million.

The corporation asserted that Postel could not have sealed a deal with Exclusives without the consent of KPTC or Telkom.  At the same time, the telco argued that Postel needed the minister’s green light to transfer its rights.

Exclusives argued that Telkom had no case to challenge the Sh21 million award and asserted that there was no evidence of the property's current market value.

It argued Telkom could not have struck a deal with Aftraco when there was a caveat on the property.

Justice Ngenye Macharia set aside the arbitration award to Exclusives pending the full hearing of the case.

Telkom said it settled the dispute with Aftraco Limited and stopped Exclusive’s award.

Meanwhile, in the new case, Postel, Henry Belsoi, Amson Kabii and Magoma claimed that the magistrate’s court had dismissed the case, hence, the court could not intervene.