The Ethics and Anti-Corruption Commission (EACC) has announced plans to recover Sh1.5 billion and pursue criminal prosecution after the Court of Appeal upheld findings that compensation paid over land occupied by Ruaraka High School and Drive Inn Primary School was unlawful.
In a statement on Monday, EACC CEO Abdi Mohamud welcomed the Court of Appeal decision delivered on July 3, 2026, which upheld an earlier ruling by the Environment and Land Court declaring the payment of Sh1.5 billion in compensation for the land unlawful, null and void.
The appellate court in Nairobi, made up of Justices W. Karanja, F. Tuiyott and W. Korir, dismissed an appeal filed by Afrison Export Import Limited and Huelands Limited, who had challenged the earlier finding that the land occupied by Ruaraka High School and Drive Inn Primary School is public land.
The Appeals court agreed with the lower court that the 13.5-acre parcel of L.R. No. 7879/4 had been surrendered to the Government as part of conditions for subdivision approval, and therefore could not be treated as private property subject to compulsory acquisition.
The judges ruled that the National Land Commission had no legal basis to acquire land that was already owned by the State.
“On the question of the lawfulness of the part payment of the compensation, it follows from our finding that the schools are located on public land by virtue of the surrender, that the NLC had no legal basis upon which it could compulsorily acquire them. The doctrine of eminent domain only applies where the State initiates the taking of private property for public use,” the court ruled.
“Consequently, the payment of Sh.1.5 billion to the appellants was illegal, null and void. It was money paid under a mistake both in law and fact.”
The companies had asked the court to declare them rightful owners of L.R. No. 7879/4, arguing that the school land was never surrendered to the Government, and compel payment of an additional Sh1.769 billion. However, all the requests were dismissed.
Court records show the dispute began in 2015 after a claim was filed before the National Land Commission seeking compensation for land occupied by the two schools. Investigations later established that the land had been acquired through an indenture registered in 1981 but was later surrendered to the Government as part of the subdivision process.
The Ethics and Anti-Corruption Commission, working together with the Ministry of Lands, the Ministry of Education, and Nairobi City County, among other agencies, concluded that the land had already become public and was not eligible for compensation.
The EACC said it had also secured the original title deed during its investigations and placed a caveat on the property to protect public interest following the payment of the disputed amount.
Following the court ruling, the commission has now confirmed that it will move to recover the Sh1.5 billion paid to Afrison Export Import Limited and Huelands Limited through Whispering Palms Estate Limited.
The commission also said investigations into possible criminal liability involving public officers and other individuals who facilitated the transaction are complete. The inquiry file was first forwarded to the Director of Public Prosecutions on February 11, 2025, but further action was put on hold pending the outcome of the appeal.
With the case now concluded, the EACC said it will resubmit the file to the DPP for review and possible prosecution of those found culpable.
The commission further urged the Ministry of Education and the National Land Commission to take immediate steps to secure public interest by ensuring proper title documentation for the land occupied by the two schools.
EACC said it remains committed to recovering public resources lost through corruption and ensuring accountability in the management of public assets.
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