EACC probing alleged grabbing of Nairobi County land in Karen

The Ethics and Anti-Corruption Commission (EACC) is currently probing claims of fraudulent procurement of a 5.12 acre parcel of land in Karen belonging to the Nairobi City County government.

Private developers are alleged to have unlawfully acquired the property and are now seeking compensation of Ksh.1.28 billion from City Hall.

The parcel of land was reserved for sewage work and staff housing and is still being used by the Nairobi City Water and Sewerage Co. as a sewerage pond.

Preliminary investigations by the anti-graft watchdog indicate that the parcel was allocated to Nairobi City Council in 1969 subsequent to the approval of a land survey plan dating back to 1966.

"On 4th July 1969 the City Council of Nairobi accepted the offer and paid the stand premiums. On 4th December 1969 the Commissioner of lands issued a draft grant to the City Council of Nairobi for LR 12037 (originally No. 2259/144) for acceptance," a source at EACC told Citizen Digital.

"On 5th January 1970 the City Council of Nairobi returned the accepted signed grant to the Commissioner of Lands for registration. On 13th May 1970 a Grant IR 23361 for LR No. 12037 was registered in the name of the City Council of Nairobi."

According to the EACC source, on March 24, 2000, the Acting Town Clerk of the City Council of Nairobi requested a change of land use on LR No. 12037 from sewer work to a mix of residential and commercial purposes.

Subsequently, on November 28, 2000, the Commissioner of Lands informed the Town Clerk that the government had approved the requested change, effective November 1, 2000, with conditions including the surrendering of the existing title for a new one reflecting the updated land use and rent, submitting the approved deed plan, and paying the necessary legal fees for the surrender.

"On June 13, 2013 the Town Clerk and the Mayor surrendered the Grant IR 23361 in consideration of approval of extension of term in respect to LR. 12037. On June 14, a new Grant IR 146032 for LR No. 12037 was registered in the name of The City Council of Nairobi," said the source.

"On November 18, 2013 parcel number LR No. 12037 was transferred through an instrument of transfer between the City Council of Nairobi and Davjon Group Ltd. The instrument of transfer was executed by officials of the Council that is, the Mayor and Town Clerk and sealed by the common seal of the Council. On November 19, the land was leased to Davjon Group Ltd for a term of 99 years from January 1, 1969 at an  annual rent of Ksh.1.2 million."

The source added that by the time the instruments of transfer were allegedly executed by the Mayor and Town Clerk, the City Council of Nairobi was not in existence as County Governments had come into operation through the operationalization of the New Constitution.

"Davjon Group Ltd has filed a suit against Nairobi City Water and Sewerage Co., County Government of Nairobi, NLC & Chief Land Registrar in Court ELC No. E198 of 2023 Davjon Group Ltd alleges that the Nairobi Sewerage and Water Company is interfering with the quite enjoyment and beneficial use of the suit property LR No. 12037," said the source.

In the suit, Davjon Group is seeking a total payment of Ksh.1.28 billion; the amount includes Ksh. 1,180,000,000 as compensation for what they claim is the compulsory acquisition of their property.

Additionally, the company is seeking Ksh.50 million for specific damages related to the costs incurred for the preparation and registration of the lease, along with interest and another Ksh.50 million as compensation for the expenses associated with improving the property in question.

"In its investigations, the Commission seeks to establish the alleged fraud in the transfer of the parcel of land to Davjon with a view to averting the loss of public funds being the proposed Ksh.1.28 billion in illegal compensation sought by the private developer," said EACC in a statement.

"The private developer is believed to have hatched the fraudulent scheme in cahoots with senior officials of the County Government and Ministry of Lands currently under investigation."

Commenting on the development, Nairobi Governor Johnson Sakaja welcomed the move, noting that cases of land grabbing have been surging across the county.

"I thank EACC for helping us to recover this property and helping us deal with those who were trying to grab it some including public servants. We want to put land grabbers on notice whether you grabbed it in the 90s or 80s; we have records from 1901," he said.

"In Kasarani, Maji Mazuri 5.2 acres it was grabbed and it was even being sold to us. In south B we recovered land that was grabbed and we are building a market. We discovered close to 700 parcels that were surrendered to the county many in Karen, Eastlands and Westlands. We commend EACC for collaborating with us and that is what it means to recover public property."