Lands PS Korir, MP Ntutu among key figures sued over Sh2.7bn SGR land payout saga
The petitioners say the money was meant to be disbursed to them through their chosen law firm, Letangule & Co. Advocates, but was instead funnelled through other firms without their knowledge or approval.
A storm is brewing over the alleged disappearance of Sh2.75 billion meant to compensate landowners displaced by a standard gauge railway (SGR) project.
Now, a group of 184 aggrieved petitioners is calling on the High Court to intervene, accusing high-ranking government officials of orchestrating the embezzlement of the money.
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The lawsuit, filed by renowned lawyer, Prof PLO Lumumba, places a Principal Secretary, a sitting Member of Parliament, and several law firms at the centre of a compensation scandal involving the compulsory acquisition of 93 acres of land in Narok County.
The petitioners say the money was meant to be disbursed to them through their chosen law firm, Letangule & Co. Advocates, but was instead funnelled through other firms without their knowledge or approval.
According to court documents, the members of the Dupoto/Dafur Settlement Welfare Scheme had appointed Letangule & Co. Advocates to act on their behalf throughout the compensation process.
However, they claim that without their consent, the money was diverted to Sankale & Co. Advocates and Johnson and Partners LLP, two firms they had no relationship with.
“The members of the Dupoto/Dafur Settlement Welfare Scheme appointed the firm of Letangule & Co. Advocates to represent them in the transaction involving the compulsory acquisition of their land by the Kenya Railways Corporation,” reads the petition.
Lands Principal Secretary Nixon Korir is accused of stepping in during the title processing phase in 2023, offering assistance to secure the title deed.
The petition states that the PS had several meetings with the scheme's secretary, John Kiyian Karu, but updates were never relayed to the rest of the members.
It was only later that members were told 38 out of their 93 acres had to be surrendered or they risked not receiving their title.
Members were also directed to open bank accounts at Kenya Commercial Bank, a move the petitioners believe was intended to conceal the full compensation amount.
Legal representation
The suit alleges that this marked the beginning of a well-orchestrated plan to reassign their legal representation and misappropriate the funds.
On October 31, 2023, officials from the settlement scheme allegedly replaced Letangule & Co. Advocates with Johnson and Partners LLP in a manner described in court as “unprocedural, unlawful, and secret.”
By mid-December, the petitioners discovered that Kenya Railways had already processed and executed a land transfer of 55 acres through the new law firm, and that Sh2.75 billion had been paid out for the transaction.
Court documents reveal that each member was asked to submit personal bank account details with assurances that compensation would follow.
One of the petitioners, Korinke Ole Gisa, says he received only Sh3 million and was promised the balance would be paid after they relocated. That promise, he says, was never fulfilled.
Despite the total payout amounting to billions, the group claims they only received under Sh250 million combined, with individual payouts ranging from as little as Sh50,000 to Sh2 million.
They insist the compensation was not only inadequate but also inconsistently distributed.
Adding to their frustration, Letangule & Co. Advocates, who had handled the matter for six years, were supposed to receive Sh80 million in legal fees but reportedly got only Sh2 million. The rest of the funds were allegedly diverted by the scheme's trustees.
The court filing breaks down how the money was distributed once it landed in the accounts of the two law firms.
On December 16, 2023, Sankale & Co. Advocates received Sh1.246 billion, while Johnson and Partners LLP got Sh1.5 billion. Just two days later, the money was disbursed to at least 11 beneficiaries.
Among them, the petition names: Nick Ndenda & Associates (Sh112.25 million), Moniket & Co. Advocates (Sh155 million), Narok South MP Kitilai Ole Ntutu (Sh250 million), and several other law firms, each receiving tens of millions. Notably, on December 19, Sankale & Co. Advocates allegedly withdrew Sh181 million in cash.
Look into the matter
The plaintiffs have requested the Directorate of Criminal Investigations, the Ethics and Anti-Corruption Commission, and the Director of Public Prosecutions to look into the matter.
They accuse PS Korir of appointing unfamiliar legal representatives, signing a false sale agreement, and pressuring them to withdraw a previous court case.
“He (Korir) secretly appointed Johnson and Partners LLP Advocates, who were strangers to the plaintiffs, to receive the money paid for compensation to the plaintiffs, in place of Letangule & Co. Advocates who had always been on record for the plaintiffs,” the court documents state.
The petitioners also want MP Kitilai Ole Ntutu investigated for allegedly receiving Sh250 million, despite not being a landowner in the scheme.
“He was heard, on several occasions, stating that he had direct instructions from the President of the Republic of Kenya to settle the matter, a claim which turned out to be a ploy to intimidate the plaintiffs,” the court was told.
Johnson Osoi of Johnson and Partners LLP is said to have played a direct role in the alleged embezzlement, including the payment of Sh15 million to Seru Moinket.
Another Sh155 million was reportedly paid to Moinket & Co. Advocates, with the scheme’s secretary allegedly determining who would get paid and how much.
The petitioners say some of them took out loans totalling Sh78 million in anticipation of full compensation.
Their financial troubles have only deepened after learning of the misappropriated funds.
The plaintiffs are now urging the court to prioritise the matter, arguing that Kenya Railways has already taken over 55 acres, and the remaining 38 could end up in unknown hands unless immediate action is taken.
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