Court orders NHC to pay businessman Sh32m

When cornered with the evidence, the state corporation admitted the land belonged to Kadir, and that they illegally invaded the property based on a misleading court order. [iStockphoto]

The National Housing Corporation (NHC) has been ordered to pay a businessman more than Sh32 million for attempting to grab a piece of land it sold him.

Environment and Lands Court ruled that it was wrong for the state corporation to reclaim the land after realising that the market price had gone high.

"Evidence on record shows that the National Housing Corporation sold the land to Swaleh Abdil Kadir who went ahead to develop residential flats. It was illegal for the corporation to demolish his property on account that they wanted the land back," ruled Justice Millicent Odeny.

The judge ordered NHC to pay Kadir Sh30 million as compensation for demolishing his building and another Sh2 million in accrued rental income the businessman would have earned from the time his property was invaded in 2018.

The businessman stated that he bought the piece of land in Malindi Township, Kilifi, from NHC in December 1993 at Sh145,000.

He testified that after getting the requisite building approvals from the Municipal Council of Kilifi, he constructed a double-storey building, which he rented to five tenants with a monthly income of Sh28,675 per house.

But on February 12, 2018, the state corporation, without notice, evacuated the tenants and demolished the building.

Kadir said he spent between Sh12 million and Sh13 million to build the houses in 2002.

When cornered with the evidence, the state corporation admitted the land belonged to Kadir, and that they illegally invaded the property based on a misleading court order to demolish the building.

"NHC admitted that they indeed wrongfully demolished the complainant's building. It follows therefore that the sole issue is for the businessman to be paid damages for the losses and anguish suffered," the judge said.

He said the businessman had proved his claim for compensation.