How money meant for land was shared out

The Sh283 million that was meant to buy land for a cemetery in Mavoko was transferred to various individuals and firms from a joint account operated by three law firms.

The Local Government ministry had provided Sh290 million out of which Sh283 million was released to Nairobi City Council in June 2008. The money was sent through the council’s lawyer, E.N. Omotti and Co Advocates.

Legal fees

Out of the amount, the firm paid itself Sh2 million as legal fees. And while the cash was in their account, it earned Sh1.8 million interest which the firm also retained.

The firm then deposited Sh281 million to the joint account run by Odero Osiemo & Co Advocates, PC Onduso & Co Advocates and Alphonce Mutinda & Co Advocates.

Alphonce Mutinda received Sh135 million while Mr Onduso transferred Sh9.6 million to his account.

Investigators could not understand why individuals like former permanent secretary Alice Mayaka, were paid and their role in the transaction, could not be identified. Ms Mayaka received Sh4 million. Another woman, Ms Doreen Oyugi, got Sh3 million.

It was the same case for the Sh2 million paid to Moeckings Contractors. It is not clear what services the firm offered.

The main beneficiaries should have been Mr Maina Chege of Naen Rech Ltd and Mr Einswick Van Sen, his partner from Israel.
Mr Chege was the broker between Mr Henry Kilonzi, the landowner and City Council.

He told a parliamentary committee investigating the matter that he expected Sh273 million from the transaction — out of which Mr Kilonzi was entitled to Sh110 million.

However, Mr Chege says he only received Sh11 million and claims the rest of his entitlement was still with his lawyers.

The transaction seems to have provided an avenue for making easy money. Take the case of Mr Celphas Mwaura who pocketed Sh9.3 million for “introducing” the land owner to Alphonce Mutinda Advocates who were acting for the buyer.

For their part, Odero Osiemo and Co Advocates received Sh117 million out of which Sh29 million was deposited with Cibiya WorldWide Ltd whose director is Mr Newton Osiemo, Mr Odero’s brother.

Members of the House team chaired by ODM’s Shakir Shabbir however, contend that Mutinda Advocates should have received only Sh110 million and not Sh135 million. “He should disclose who received the balance of the money.”

Mr Osiemo is said to have used Sh20 million to buy a five-acre piece of land at Karen and Sh1.6 million to buy a van. The MPs accused him of acting as a distributor of money to various accomplices and hiding behind his brother’s firm.
“He should be investigated and made to refund the Sh170 million or disclose for what purpose he had retained the cash.”

A portion of the cash from the Osiemo account - Sh7 million - went to Mrs Janet Kabura Nguku, the wife of Dr Daniel Nguku, then Nairobi medical officer of health who was a member of the council’s tender committee which approved the land deal.

Mrs Nguku used the cash to buy a house in Mlolongo for Sh4 million and Sh2 million to buy construction material for another house in Mwingi.

The Local Government ministry and council officials involved in the deal either received the cash directly or through proxies.
The investigator said a Mr Stephen Githinji received Sh8 million on behalf of Mr Musee.