Governor Gachagua to pocket Sh1bn compensation for Nairobi land

Nyeri Governor Nderitu Gachagua at Kamukunji Stadium in Nyeri on April 23, 2016. PHOTO | JOSEPH KANYI | NATION MEDIA GROUP

What you need to know:

  • On Thursday, Transport and Infrastructure Cabinet Secretary James Macharia said the high cost of land was becoming an obstacle to building roads and the standard gauge railway.
  • He said the first eight kilometres of the standard gauge railway in Mombasa cost Sh8 billion.

Nyeri Governor Nderitu Gachagua will pocket nearly Sh1 billion as compensation for a 1.2-acre piece of land the government is acquiring to build Nairobi’s southern bypass.

Similar figures will be paid by the government to get land for building the western bypass, pushing construction costs of roads and other infrastructure to astronomical levels.

On Thursday, Transport and Infrastructure Cabinet Secretary James Macharia said the high cost of land was becoming an obstacle to building roads and the standard gauge railway (SGR).

He said the first eight kilometres of the SGR in Mombasa cost Sh8 billion.

“We are dealing with the high cost of land. The National Land Commission (NLC) has been asked to address the issue,” he said.

On June 24, the NLC, in a Kenya Gazette notice, declared its plan to acquire the plot on which Mr Gachagua has built 80 apartments.

The notice came a few months after the Environment and Land Court directed the government to compensate the county boss.

Mr Gachagua got the relief when the court dismissed the government’s claim that the property was built on land meant for the road.

In February last year, the High Court ruled that the Nyeri governor be compensated at a rate to be determined by the NLC should the takeover and demolition take place.

The property in South C estate is registered under Vipingo Beach Resort Ltd, a company in which Mr Gachagua has 89.94 per cent interest.

Susan Nderitu owns a 10 per cent stake in the firm, the governor’s brother Rigathi has a 0.01 per cent interest while a Kenneth Gachagua owns 0.05 per cent.

In 2012, Vipingo Beach Resort filed a case indicating that the property was valued at Sh800 million.

The NLC said it was yet to establish the value of the estate.

“We will do the valuation and tell the government how much the acquisition will cost,” said NLC Vice-Chairperson Abigail Mbagaya Mukolwe.

The Kenya National Highways Authority did not explain why it was necessary to acquire the land despite the fact that the 29-kilometre bypass was complete and fully operational.