Six state agencies owe Kenyans Sh56 billion in compensation

National Land Commission (NLC) has told the Senate that six state agencies owe Kenyans Sh56 billion after their land was compulsorily acquired by the government for construction of roads and other projects.

The agencies owing Kenyans include Kenya National Highways Authority (KeNHA), Kenya Urban Roads Authority (Kura) Kenya Rural Roads Authority (KeRRA), Kenya Airports Authority (KAA), Kenya Ports Authority (KPA) and Kenya Railways Corporation (KRC).

National Lands Commissions (NLC) Chairperson Gershom Otachi who appeared before the Senate Roads, Transport and Housing Committee in Nairobi said the money is for 123 projects across the country initiated by the agencies supposed to compensate Project Affected Persons.

“Out of the Sh56 billion owed to Kenyans whose land has been compulsorily acquired by the government for various state projects include Sh43 billion by KeNHA, Sh1.2 billion by Kura, Sh 500 million by KeRRA and Sh 11 billion by KRC,” said Otachi.
Otachi said  that although most of these funds have not been received by the commission, the projects have been completed by the acquiring entities and that so far, the six agencies have so far remitted to the commission Sh83.4 billion for compensation, out of which the commission has disbursed and paid out Sh 79.6 billion.

He confirmed that the projects completed include Nairobi Express Way, Thika Road project, Siaya -Ruambwa Road Project, Mwatate -Taveta Road Project, Ejinja-Bumula Road Project, Thogoto -Gikambura Road Project, Iten Kapsowar Road Project, Limo Hospital -Illula Road Project, Nairobi Northern by pass Project, among others.

Otachi who appeared before the committee chaired by Kiambu Senator Karungo Thangw’a defended the commission against accusations that it was withholding funds meant for compensation of citizens for the various government projects and that they normally release the funds as soon as possible.

“With regards to specific roads such as the Sh 17 billion Nairobi Western Project, the unremitted amount to pay the affected individuals is Sh 1.3 billion out of the total requirement of Sh 1.9 billion, while the Nairobi Express Way road project has unremitted amount of Sh 10.3 billion, yet the project cost is Sh18.2 billion,” said Otachi.

He told the committee that the Kibwezi Mutomo Road project has unremitted total  of Sh 1.6 billion as the commission has only received Sh 344.4 million out of the total requirement of Sh 1.9 billion for compensation for those whose land was acquired for the project.

Otachi said that for the James Gichuru- Rironi Road project, the commission is yet to receive Sh 2.2 billion to compensate affected persons as they have only been sent Sh10.4 billion out of the total requirement of Sh 12. 6 billion while for the Kenol Sagana Marua Road project, the commission is yet to receive Sh 2.4 billion out of the total requirement of Sh 5 billion.

The NLC chairperson acknowledged there are delays in compensating affected persons, adding that  most of the acquired land tracing back to the 1970’s is yet to be vested to the acquiring entity be it national or county governments which means that there are individuals and private institutions holding titles where public roads, airports, dams, railways and other facilities were built or located.

“Since 2013, the government has acquired about 50,000 parcels of land estimated at 35 000 hectares. The commission estimates that it would cost the government about Sh 5 billion to carry out vesting and secure the acquired land for the government,” said Otachi.

NLC CEO Kabale Tache said that the acquired land is still in the names of individuals or private entities, the said parties are free to transact using land with this state of affairs calling for immediate action which includes the acquiring entities or the National Treasury remitting to the commissions funds to carry out this overlooked final step in acquisition process.

Tache  said that they normally ensure that individuals whose land has been acquired are paid immediately they receive any funds, explaining that they have been releasing as little as Sh 1 million because of inadequate compensation whenever it is availed.

“The reason  we pay out as little as Sh 1 million is that the compensation process may delay because of lack of funds and at times, you may find a person that is supposed to be compensated is ill and may need to go for treatment —so we are forced to write to the state agencies to release certain amount of money to support such cases,” said Tache.

Finance Director Ben Cherutich regretted that most of those who are supposed to be compensated have died without receiving their monies due to slow process of releasing the funds, due to challenges caused by budgetary constraints.