Senators fault NLC over delayed KenGen land compensation
Delays in compensation have continued to draw criticism, with landowners and Senators questioning the slow pace of settlements for properties acquired for public projects.
Kenya Electricity Generating Company (KenGen) is still waiting to be paid Sh250.6 million for land taken by the Kenya National Highways Authority (KeNHA) for a major road project five years ago, raising concerns over delays in compensation for project-affected property.
The power producer told Auditor-General Nancy Gathungu that, despite repeated requests, neither KeNHA nor the National Land Commission (NLC) has addressed its claim for the Changamwe land used for the Mombasa–Mariakani dual carriageway.
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“Review of records indicates that management has made several correspondences to the NLC and KeNHA seeking compensation of Sh250,611,659, but no response has been received by the time of the audit,” the audit report notes.
The conflict arose after KeNHA compulsorily acquired 2.52 acres out of KenGen’s 8.36-acre property, leaving the company with 5.84 acres.
The NLC had assessed the land and awarded KenGen Sh250.61 million to cover the land, improvements, and a disturbance allowance.
The State Department for Roads also wrote to the National Treasury on behalf of KeNHA, requesting funds to clear the outstanding payment.
KenGen said the road construction caused considerable disruption, cutting sewer lines and damaging the perimeter wall of its property.
Two staff housing blocks became temporarily uninhabitable, and the company estimates they would have earned at least Sh768,000 in annual rental revenue.
Delays in compensation have continued to draw criticism, with landowners and Senators questioning the slow pace of settlements for properties acquired for public projects.
In May, senators warned the NLC about the problem and proposed a system where funds are provided upfront to ensure landowners are paid before surrendering their property.
Busia Senator Okiya Omtatah highlighted the issue, calling the delays “unjustifiable” and demanding faster processing of claims by government agencies acquiring land for development projects.
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