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Court orders NLC to pay Sh1.2bn for land acquired to build roads in Mombasa

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The court ruled that Hassanali is entitled to just compensation for the land unlawfully acquired by the NLC and used by KeNHA.

The National Land Commission (NLC) has been ordered to pay Sh1.2 billion in compensation for 16.2 hectares of land acquired for the Mombasa Southern Bypass and the Kipevu Terminal Link Road.

Justice Stephen Kibunja of the Environment and Land Court on Friday further directed the NLC to pay interest at a rate of 13 per cent from January 2017, when the Kenya National Highways Authority (KeNHA) took possession of the land.

The court found that the NLC's process for acquiring the land, which belonged to businessman Karim Mohamed Hassanali, was unlawful, as it did not follow proper procedures.

"The process the first defendant (NLC) used to acquire the plaintiff's land, the takeover and use by the second defendant (KeNHA) fell short of adherence to the constitutional and statutory procedures prescribed," Justice Kibunja said.

Despite the land having been taken over by KeNHA for road construction, the court noted that Hassanali still holds the title for the entire parcel of land, including the section used for the road. This means the land remains privately registered.

The court ruled that Hassanali is entitled to just compensation for the land unlawfully acquired by the NLC and used by KeNHA for public works.

The businessman had originally claimed compensation for 16.8 hectares of land expropriated for the road project in 2015, valued at Sh1.214 billion as of June 30, 2017.

The NLC disputed the compensation amount, offering Sh137,521,600, which it said would be paid once ownership disputes were resolved.

However, the court ruled that interest on the compensation should begin accruing from the date of possession in January 2015.

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