NLC blames six state agencies for delays in Sh56 billion land compensation row

A blame game unfolded on Thursday when the National Land Commission (NLC) faced Senators over delays in compensating displaced Kenyans.

During a Senate Roads and Transportation Committee hearing, the NLC placed the blame on state agencies responsible for carrying out the projects.

NLC Chairman Gershom Otachi told lawmakers that these agencies had not yet released the Sh56 billion set aside for compensating those affected.

"The commission is yet to receive Sh56 billion from the above-acquiring entities," Otachi stated.

The agencies involved include the Kenya Ports Authority, Kenya Airports Authority, Kenya Railways Corporation, Kenya Rural Roads Authority, Kenya National Highways Authority, and Kenya Urban Roads Authority.

Otachi explained to the committee, led by Kiambu Senator Karungo Thang'wa, why compensation was delayed for thousands of people who gave up their land for government projects.

He clarified that KURA has not released the Sh1.2 billion, even though the commission is responsible for compensating those affected once it receives funds from the agencies carrying out the projects.

Also,  KeNHA has yet to remit Sh43 billion for compensation, Kenya Railways Sh11 billion, and KERRA is yet to disburse Sh500 million to NLC to pay Kenyans who surrendered land for projects.

The NLC Chairman told the committee that the acquiring entities have now completed the majority of the projects for which the commission has not yet received funds.

Some of the projects that have been completed but land owners are yet to be compensated for include the Mwatate-Taveta Road, the Thika Road, the Siaya-Rwambwa road and the Nairobi Expressway.

Other roads include the Ejinja-Bumala Road, the Iten-Kapsowar Road, the Thogoto-Gikambura Road, and the Nairobi Northern Bypass Road.

The NLC revealed that the agencies are implementing some 123 projects across the country with a compensation value of Sh139.44 billion.

"The agencies have since remitted to the commission Sh83.44 billion for compensation of the affected persons within the 123 projects," Otachi said.

Out of that amount, the commission has paid out Sh79.62 billion to the people affected by the project.

"It is worth noting that the commission has processed over 95 per cent of the compensation fund received from the acquiring entities to compensate the Project Affected Persons (PAPs)," Otachi said.

"The commission is currently holding Sh3.95 billion whose payments are at various stages of processing," he added.

For specific road projects like the Sh17 billion Nairobi Western Project, Sh1.3 billion remains unremitted for the payment of PAPs, out of the total Sh1.9 billion required.

National Land Commission (NLC) Chairman Gershom Otachi appears before the Senate Committee on Roads, Transportation and Housing on Thursday, September 5, 2024. (Photo: Parliament of Kenya)

The Nairobi Expressway project has an unremitted balance of Sh10.3 billion, even though the total project cost is Sh8.2 billion.

Regarding the Kibwezi Mutomo road project, Sh1.6 billion is yet to be remitted, as only Sh344.4 million out of the needed Sh1.9 billion has been received.

For the James Gichuru Rironi road project, Sh2.2 billion is still due, with Sh10.4 billion already received out of the total of Sh12.6 billion.

In the Kenol Sagana Marua road project, Sh2.4 billion out of Sh5 billion remains unremitted.

As for the Mombasa Gate Bridge Project, it is divided into two main sections—the Mainland and the Island.

The commission stated that inspections are still underway for the island section, while they are yet to begin on the mainland.

As a result, no awards have been issued since the project is still in its early stages.

Additionally, the NLC chairman noted that some land acquired for projects in the 1970s has yet to be transferred to the acquiring entities, whether national or county governments.

"This means there are individuals and private institutions holding title to the land where public roads, airports, dams, railways and other facilities were built or located," Otachi said.

Finance Director Ben Cherutich informed the committee that many Project Affected Persons (PAPs) have passed away before receiving their compensation due to delays in fund release.

"Most of them have died having not received their funds because of budgetary issues. As you know, the government is working on a tight budget," he stated.

The Commission called for urgent action to complete the land acquisition process, estimating that it would cost  Sh5 billion to finalise the vesting of approximately 50,000 parcels of land acquired since 2013 covering 35,000 hectares.

The Senate Committee resolved to invite all relevant stakeholders to discuss the matter further.