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Thursday, June 30, 2016

Nyeri governor to pocket Sh1bn for Nairobi Southern bypass land


Nyeri Governor Nderitu Gachagua. Nyeri Governor Nderitu Gachagua is set to pocket nearly Sh1 billion as compensation for his land that the government is acquiring for the construction of Nairobi’s Southern Bypass. PHOTO | JOSEPH KANYI | NATION MEDIA GROUP 
By KIARIE NJOROGE, gkiarie@ke.nationmedia.com
In Summary
  • Mr Gachagua got the big relief after the court dismissed the government’s claim that the property marked for demolition had been built on the Southern Bypass reserve land.
  • The Business Daily was unable to reach Mr Gachagua to establish if their valuation of the property has since changed and how much he expected to be paid for it. The NLC said that it was yet to establish the property’s worth.

Nyeri Governor Nderitu Gachagua is set to pocket nearly Sh1 billion as compensation for his land that the government is acquiring for the construction of Nairobi’s Southern Bypass.
The National Land Commission (NLC) on Friday made public through a Kenya Gazette notice its plan to acquire the 1.2-acre plot on which Mr Gachagua has built 80 apartments — making it one of the highest payments the government is set to make to acquire land for road construction.
The notice came a few months after the Environment and Land Court directed the government to compensate Mr Gachagua for the intended demolition of his property.
Mr Gachagua got the big relief after the court dismissed the government’s claim that the property marked for demolition had been built on the Southern Bypass reserve land.
Justice Mary Gitumbi had in February 2015 ruled that Mr Gachagua be compensated at the rate that is determined by the NLC should the forced takeover and demolition of the property take place.
“The petitioner is entitled to just compensation as may be determined by the National Land Commission for the suit property and the development that has been erected thereon should the respondents proceed with the entry into the suit property and demolition of the development thereon,” the judge ruled.
The impending mega compensation is the latest signal of the heavy price the State is paying for the chaos at the lands registry that has left it with no option but to spend billions of shilling to acquire the land it needs to develop public infrastructure.
The property located in Nairobi’s South C estate is registered under Vipingo Beach Resort Limited, a company in which Mr Gachagua has 89.94 per cent interest, according to information at the Registrar of Companies.
Valuation of the property
Susan Nderitu owns a 10 per cent stake in the company, the governor’s brother Rigathi Gachagua has a 0.01 per cent interest while a Mr Kenneth Gachagua owns 0.05 per cent. Vipingo Beach Resort had in suit papers filed in 2012 indicated that the property had a conservative value of Sh800 million.
The Business Daily was unable to reach Mr Gachagua to establish if their valuation of the property has since changed and how much he expected to be paid for it. The NLC said that it was yet to establish the property’s worth.
“A team is on the ground doing the valuation. We have to do the valuation and tell the government how much the acquisition will cost,” Abigail Mbagaya Mukolwe, the NLC vice-chairperson, said.

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