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The Standard

Oil firm wants NLC chair, Kenha DG jailed over Sh540m land payout

By Joackim Bwana | 5d ago
National Lands Commission (NLC)  Chair Gerishom Otachi before the National Assembly's Committee on Lands at Continental House, Parliament, Nairobi. February 24, 2025. [Elvis Ogina, Standard]

Alba Petroleum Limited wants the National Lands Commission (NLC) Chair Gerishom Otachi jailed for failing to pay it Sh540 million for its land in Mombasa as ordered by the courts.

In a certificate of urgency filed before Justice James Olola, the oil firm also wants Kenya High Authority (KENHA) Director General Eng. Kungu Ndungu committed for contempt of court order.

NLC repossessed the oil merchant's land through compulsory acquisition for the construction of the planned 4-kilometre Mombasa Gate Bridge with a main span of 660 metres.

The $1.3 billion bridge, set to be the longest in Africa, will link Mombasa Island and the South Coast. The project funded by the Japan International Cooperation Agency (JICA) is at the tendering stage.

Yesterday, Justice Olola certified the application as urgent and issued temporal orders restraining NLC and KENHA from recommencing inquiry into the compensation claims by third parties on the suit property.

“I am satisfied that the matter is urgent. Accordingly, I hereby issue on a temporary basis restraining orders as sought. It is further hereby directed that the motion be served urgently upon the respondents for inter partes consideration on 23rd April 2025,” said Justice Olola.

Alba Petroleum Limited, through its lawyer Willis Oluga, said that Otachi and Eng. Kungu declined to honour a decree by the high court directing them to compensate for the said land one year later.

Oluga said that the NLC, through a gazette notice dated February 13, 2025, and published on March 14, 2025, recommenced the compensation process on behalf of KENHA by calling for a fresh inquiry to hear claims to compensation from interested parties on the said land.

The lawyer filed a certificate of urgency before Justice Olola and said that the inquiry is scheduled for April 3, 2025, at NLC’s offices in 316 Upperhill Chambers, 20th Floor Boardroom.

“If this matter is not certified as urgent and interim orders granted as sought, the fresh inquiry which the NLC and KENHA have called for is likely to open a floodgate of claims of compensation by third parties; yet this Honourable Court has already made a determination that the Petitioner is the bona fide owner of the suit properties and that he should be compensated, and therefore there will be blatant disobedience of this court’s order,” said Oluga.

Alba Petroleum Director Alnoor Jiwan said that Justice Lucas Naikuni ordered that the valuation of the suit land be undertaken and the value be paid to Alba Petroleum Limited by the NLC within 30 days of the judgement.

Justice Naikuni ordered that the oil firm be awarded general and exemplary damages at five per cent of the value of the suit property arising from the delay in the payment of the award of compensation from the compulsory acquisition of the suit land.

Jiwan said that the 30 days given to NLC and KENHA to comply with the court order have long lapsed, but they continue to disobey the court order.

He said the judgement of this court was very clear that the only step that remained was the valuation of the suit properties and payment of compensation to the oil company, and the process cannot be returned back or reverted to the stage of inquiry.

Jiwan said that the inquiry on the ownership of the suit properties was undertaken long ago, and the same cannot be reopened.

“Through the judgement delivered on February 26, 2024, Justice Lucas Naikuni issued, inter alia, an order of mandatory injunction to compel the NLC and KENHA (1st and 2nd Respondents) to pay full, adequate, fair, reasonable and just compensation to the Petitioner (Alba Petroleum Limited for the compulsory acquisition of the property situate in Likoni in Mombasa County) within the next 30 days from the delivery of the judgement,” said Jiwan.

The director said by returning the process to the stage of inquiry, NLC and KENHA are in blatant breach of the court order.

Related Topics

Gerishom Otachi National Lands Commission Alba Petroleum Limited
.

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