Companies
Rubis, Nicholas Biwott firm sued over Sh1.6bn railways land row
Thursday March 07 2024
A Rubis fuel station along Koinange Street in Nairobi. PHOTO | DENNIS ONSONGO | NMG
The Ethics and Anti-Corruption Commission (EACC) has moved to court seeking a Sh1.6 compensation from oil marketer Rubis Energy Kenya and other firms for illegally occupying land belonging to Kenya Railways Corporation (KRC).
The agency says in the petition filed at the Environment and Land Court that the land at the Haile Selassie Avenue and Uhuru Highway junction was not available for allocation and should revert to the government.
The EACC also names Lima Ltd –a company associated with former minister Nicholas Biwott— and LZ Engineering Construction Ltd in the suit, saying Rubis should vacate the land and compensate the government for illegal occupation of the land since 1980.
“The third defendant and its agents, servants or assigns be…ordered to vacate and deliver vacant possession of the suit properties LR No. 209/9640 and LR No. 209/1233 Nairobi, failing which an eviction order to issue,” EACC says in the petition.
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Also sued are former Ardhi House official John Michael Ohas, former director, Physical planning, James Raymond Njenga and Mr Wilson Gachanja, a former Commissioner of Lands.
The EACC says the companies have used the land illegally for private gain since 1980.
It wants the court to compel the firms to pay Sh1.3 billion from the first portion which has been in private hands from 1980 at Sh30 million per year and for the other portion, Sh280 million for using it from 1996 at an annual rate of Sh10 million.
“Despite demand and notice having been served upon the third defendant, the defendants have failed and/or neglected to make good KRC’s claim by surrendering the property to the government,” the petition says.
EACC wants the plots reverted to KRC and Kenya National Highways Authority, respectively.
According to the commission, the land was originally reserved for KRC and was surrendered for public use in the 1960s, initially for the construction of the Post Office headquarters.
It was subsequently reserved for the construction of a flyover and cloverleaf to ease traffic congestion.
EACC says the property was alienated government land and therefore, not available for allocation to private entities.
It says a Nairobi municipality plan No.4 dated June 30, 1945 shows the delineation of land within the municipality, designating the area bound by Uhuru Highway (formerly Princess Elizabeth Way) and Landhies Road, as Kenya Railways land.
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In 1960, the defunct City Council of Nairobi proposed the development of a flyover and cloverleaf at the junction, necessitating KRC to cede the land.
The plan was abandoned and the land subsequently surrendered to the Post Office.
However, in disregard of the existing alienation and public user, Mr Ohas and Mr Njenga reportedly facilitated the illegal alienation and allocation of the surrendered land to Lima Ltd.
In an April 16, 1980 letter, Mr Njenga directed Mr Ohas to urgently prepare a plan creating two plots, which was allocated to Lima Ltd on June 1, 1980 for 99 years.
The land was transferred to LZ Engineering and a grant registered in its favour on November 29, 1984. It was later transferred to Rubis, the EACC says in the petition.
One of the parcels measured 0.14 hectares and the other measured 0.2766 hectares.
Further, part of the land was also set aside for a road reserve and public toilet owned by the city council.
EACC said despite being aware that the land was a road reserve and containing a public toilet, the defendants applied for allocation of the land and sought for its amalgamation.
The anti-graft body says Mr Ohas caused the preparation of a part development plan Ref. No. 42/10/94/4 for proposed commercial plots A and B.
Court documents said the plan was approved on March 30, 1994 by Mr Gachanja but it was not assigned an approval number and consequently, not entered into the approved plans register.
The plots were later allotted to Podo Investments and Kaplong Agencies but the allotment letter was withdrawn in 1996 and issued to KenolKobil.
“The plaintiff contends that both properties herein comprised of land alienated for public utilities and therefore not available for allocation,” EACC added.
The anti-graft body said the fraudulent and illegal excision of a parcel of land from a public road reserve with an existing amenity and the creation of land number was null and incapable of conferring any right to Rubis.
