The National Land Commission (NLC) has been ordered to pay a Nairobi landowner Sh909 million within 90 days, ending a 12-year compensation battle over a property compulsorily acquired for the construction of the Southern Bypass road.
The Environment and Land Court ruled that government agencies, including NLC and the Kenya National Highway Authority (KeNHA), cannot evade constitutional obligations to promptly compensate landowners by shifting blame among themselves.
The court warned that the NLC chairman and chief executive could face contempt proceedings if the commission fails to comply with the payment order. The ruling capped a protracted legal fight that began after the State compulsorily acquired part of Five Star Agencies Limited’s land in Lang’ata for the construction of the Southern Bypass aimed to ease traffic gridlock in Nairobi city.
The prime parcel along Lang’ata Road measured approximately 20 acres, but the NLC compulsorily acquired about 0.4281 hectares of the land for the road project. The NLC had offered to compensate Five Star Agencies Sh87 million for the parcel, but the company challenged the award and secured a judgment in November 2014 for Sh413 million, with interest accruing until payment in full.
However, the company said it had been unable to recover the money despite years of litigation and repeated demands to government agencies.
In the latest application filed in March 2025, the firm sought orders compelling the NLC chairman and the CEO to settle the outstanding amount, which had risen to Sh909 million by December 2024 due to accumulated interest.
The company argued it had extracted and served a certificate of order against the government after appeals arising from the dispute had been exhausted, but no payment had been made.
NLC opposed the application, insisting that it merely facilitated compulsory acquisitions and that the responsibility for availing compensation funds lay with the KeNHA, which acquired the land for the road project.
The commission, through its CEO Kabale Tache Arero, told the court that KeNHA had not deposited the money required for disbursement despite follow-ups, making it unfair to punish its chief executive for non-payment.
But the court rejected the argument, saying the commission was raising issues that should have been addressed during the substantive hearing.
“I find that these are issues the court ought to have been canvassed at the hearing of the suit and as such are being raised too late after judgment had been rendered,” the judge said.
“The judgment of the court has not been vacated and still remains unexecuted,” he added.
The court noted that the NLC is a constitutional commission and a state organ whose execution process is governed by the Government Proceedings Act.
It found that the commission’s secretary, who is also its chief executive officer and accounting officer, bears responsibility for settling liabilities arising from court decrees.
“It would be in the interest of justice to allow the application to allow the applicant to enjoy the fruits of their long-awaited judgment having been outstanding for close to 12 years now,” the court said.
It directed the NLC chief executive officer to pay the decretal sum within 90 days and ordered the matter mentioned on September 30, 2026, to confirm compliance.
The court further warned that if payment is not made, summons would be issued to the NLC chairman and chief executive to show cause why they should not be cited and punished for contempt of court.