The Ethics and Anti-Corruption Commission (EACC) has moved to recover Ksh1.5 billion paid during the controversial acquisition of land in Ruaraka, Nairobi, putting 22 individuals and three companies on notice over the use of public funds.
The commission has issued demand letters requiring the named individuals and companies to jointly and severally refund the Ksh1.5 billion, together with interest charged at 12 per cent per year from the date the money was disbursed in 2018.
Among those named in the recovery process are Immigration Principal Secretary Belio Kipsang, Jubilee Deputy Leader Fred Matiang’i, former National Land Commission (NLC) Chairperson Muhammad Swazuri, former NLC commissioners and other officials. Companies associated with the family of the late businessman Francis Mburu have also been named.
The recovery effort follows a Court of Appeal decision which found that the NLC’s payment of Ksh1.5 billion for the acquisition of a 13-acre parcel of land in Ruaraka was illegal.
The land was linked to Afrison Export Import Limited and Huelands Limited, which were paid as part of the compensation process. EACC has now turned its attention to the people and companies it says were involved in the controversial transaction.
According to the commission, its investigations have focused on allegations of abuse of office, embezzlement and money laundering involving public funds. EACC alleges that the money was presented as compensation for the land despite the concerns surrounding the transaction.
The commission has given the affected parties seven days to pay the money. Failure to comply, EACC says, will lead to the filing of recovery proceedings in court, with the parties expected to meet the costs and other consequences arising from the action.
The demand marks another major step in a long-running dispute that has raised questions over how public institutions handled the Ruaraka land acquisition and whether public money was properly used.
However, the legal battle is far from over. Huelands Limited has moved to the Supreme Court seeking to overturn the Court of Appeal decision that has allowed EACC to pursue the recovery of the Ksh1.5 billion.
In its appeal, Huelands has raised 11 grounds and argues that the Court of Appeal failed to properly distinguish lawful planning controls from the compulsory acquisition of private property. The company also maintains that constitutional protections over private property and security of title were not adequately upheld.
Huelands further disputes the claim that public funds were lost. The company argues that it is still owed Ksh1.7 billion from an approved compensation amount of Ksh3.2 billion for the land and wants the Supreme Court to direct the NLC to pay the outstanding balance.
EACC has opposed the appeal, describing it as an abuse of the court process.
The dispute therefore remains before the courts, with the Supreme Court expected to determine the legal issues raised by Huelands. At the same time, EACC’s demand has placed the individuals and companies named in the letters under pressure to account for the Ksh1.5 billion or face fresh recovery proceedings.
