The land acquisition tribunal has saved the State-owned Kenya Railways Corporation from making a double payment for a private parcel of land used for the construction of the Mwembeni standard gauge railway substation on the Mombasa-Nairobi line.
The tribunal dismissed a compensation claim by a Mombasa-based company, Manjewa Station Limited, for the seven-acre plot, which was compulsorily acquired in 2014.
Describing itself as the rightful registered owner of the land in question, the company sued the Kenya Railways and the National Lands Commission (NLC) for compensation of Sh204.7 million, representing the assessed value of the land, as well as damages.
Through its representative, Tom Mwachiti Mwero, the company contended that it had not been compensated for the land’s acquisition and that Kenya Railways unlawfully encroached on the land without obtaining the necessary authorisations, permits, or licences.
However, the tribunal comprising Nabil Orina (chairperson) and George Supeyo dismissed the claim after finding that the company became the registered owner of the property in 2019, five years after it was acquired by the Kenya Railways for the SGR project.
It added that the company's claim amounted to unjust enrichment since the company’s director was the same person whose name appeared as the registered proprietor of the land, who was paid in 2016.
The claim raised eyebrows as the evidence showed that at the time of acquisition in 2014, the property belonged to Johnson Mwachiti and the trustees, who were compensated Sh27.8 million by NLC in January 2016.
“The complainant’s evidence indicates that it holds a title deed to the suit property, which was acquired through a transfer on September 10, 2019. It is not in dispute that the complainant was not the registered owner of the suit property at the time of acquisition in the year 2014. At the material time of acquisition, the land was lawfully owned by Mr Johnson Mwachiti and Trustees. On what basis, then, is the complainant seeking compensation for the suit property?” asked the tribunal.
The tribunal added that it was curious how the company was able to register the entire eight acres in its name even after a portion of it had been compulsorily acquired by NLC.
According to Section 120(4) of the Land Act, a parcel of land compulsorily acquired vests in the national or county government free from any encumbrance.
“The company whose director is presumably the same person who was named as the registered proprietor of the suit property together with trustees in 2014 has deliberately withheld information, which was within its knowledge, that a portion of the suit property was already acquired in 2014 and an award of compensation issued. To our minds, this is an attempt at unjust enrichment,” said the tribunal.
It further directed to conduct investigations to establish if there was an overpayment of compensation in respect of the property.
This was because a joint survey report dated February 18, 2025, indicated that the actual acreage of land acquired by the Kenya Railways and NLC was 4.74 hectares, rather than the 7.053 hectares that was gazetted.
“This material finding suggests that an overpayment of compensation was made to the registered proprietors at the time of acquisition and there is no additional acquisition in respect of the suit property which happened since the 2014 acquisition,” said the tribunal.
In response to the claim, the Kenya Railways and NLC determined that Tom Mwachiti Mwero and Johnson Mkala Mwero were the rightful owners, as recorded in the compensation schedule.
