Court stops Sh3.8bn compensation for SGR, by-pass land

A cargo SGR train at the Port of Mombasa. 

Photo credit: File | Nation Media Group

The Court of Appeal has suspended payment of Sh3.8 billion to six companies that successfully sued the government for mandatory acquisition of their land for construction of the standard gauge railway and Southern bypass in Mombasa.

Justices Pauline Nyamweya, Jessie Lesiit, and George Odunga suspended the payment following an application by the National Land Commission, arguing that the Environment and Land Court ordered the payment despite the land's disputed ownership.

Further, the court heard that the lower court ordered the NLC to pay the astronomical sums from the public coffers, which was against public policy.

African Gas & Oil Company, Miritini Port Limited, Creek Port Limited, Semix Enterprises, Mjad Investment Limited, and Kahia Transporters Ltd, challenged the constitutionality of the acquisition of more than 88 acres of land to pave the way for the rail line and the key road.

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