MPs raise red flag over irregular SGR compensation

The standard gauge railway under construction. A parliamentary committee on Tuesday called for a fresh audit of the ongoing Standard Gauge Railway (SGR) project amid claims of irregular compensation of affected landowners. PHOTO | KEVIN ODIT | NATION MEDIA GROUP 

In Summary

• This came as it also emerged that land grabbers of former Kenya Railways land were set to rake in billions in compensation.
• The committee was questioning Kenya Railways Managing Director Atanas Maina over the progress of the railway project.
• Earlier, the Kenya Railways boss had, however, washed his hands over the compensation, saying it legally lies with the National Land Commission.

By BRIAN NGUGI
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A parliamentary committee on Tuesday called for a fresh audit of the ongoing Standard Gauge Railway (SGR) project amid claims of irregular compensation of affected landowners.

The Public Investment Committee raised the red flag over the prospect of Kenyan taxpayers losing billions in shillings.

This came as it also emerged that land grabbers of former Kenya Railways land were set to rake in billions in compensation.

“It would be immoral and a betrayal to Kenyans if the very people who grabbed public land are rewarded for their sins to the tune of billions of shillings,” the committee chairman, Adan Keynan, said.

The committee was questioning Kenya Railways Managing Director Atanas Maina over the progress of the railway project.

Mr Keynan’s remarks came amid revelations that an Embakasi-based warehousing company, kn-own as Wall Street Business Park Limited, had been one of the huge beneficiaries of the compensation, having been awarded more than a billion shillings in “loss of business” claims.

“We want to know who owns this company and how the valuation for their loss of business was arrived at,” said committee members Wafula Wamunyinyi (Kanduyi) and Paul Otuoma (Funyula).

The Kenya Railways boss had, however, washed his hands over the compensation earlier, saying it legally lies with the National Land Commission.

Documents provided by Mr Maina showed that Sh20 billion has so far been awarded as claims, with Sh11 billion having been dished out to the affected land owners.

DISPARITIES IN COMPENSATION

MPs, however, wondered why there had been disparities in the compensation, with different claims being made for different parcels of land.

“Why, for instance, was an iron sheet house owner in Mombasa paid Sh10 million for a small parcel of land?” asked Mr Francis Nyenze (Kitui West).

The committee demanded that the State gives a clear account on how it settled on the route for the second phase of the planned railway between Nairobi and Malaba.

“The relevant implementing agencies must come clear on how the final route between Nairobi and Malaba was arrived at and what associated economic gains and value for money that route will have for the nation,” said committee member John Kiragu Chege (Limuru).

The Kenya Railways boss had earlier said the State settled for one of out of three possible options due to economic and after three feasibility studies.

“We settled on the Nairobi-Mai Mahiu-Nakuru-Bomet-Nyamira-Ahero-Kisumu-Yala-Malaba route after extensive feasibility studies.

“We found out that this route is much shorter than the other options and less money would be required,” Mr Maina told the committee.

The other two alternative routes were Nairobi-Naivasha-Nakuru-Eldoret-Malaba and Nairobi-Nakuru-Eldoret-Kisumu-Malaba.

Members of the committee wondered why the first route, which they said would disrupt massive arable land and result in huge compensation costs, was chosen.

Mr Maina, however, added the first route was seen as most reliable as the other routes were served by efficient railway and road corridors.

Mr Keynan directed Kenya Railways and the land commission to present to the committee in two weeks documents outlining the compensation criteria for affected businesses and land owners