What we know and the unanswered questions about Ruaraka land
Who is the registered owner of the controversial Ruaraka land LR 7879/4?
According to the Ministry of Lands, Afrison Export Import Ltd and Huelands Ltd are the registered owners, having acquired it on December 30, 1981, from Joreth Ltd. Sometime later, the two companies secured a loan from Continental Credit Finance (now under receivership) to finance development of 600 housing units on the land LR 7879/4. In 1986, Continental Credit Finance Ltd ran into financial problems and was unable to sustain the financing agreement with the two firms which owned the land in question.
After the collapse Continental Credit Finance Ltd, the project developers entered into a financing agreement with the Kenya Posts and Telecommunications Corporation (KPTC). However, KPTC also ran into financial problems in 1988 and was unable to complete financing of the project. On August 18, 1988, following financial problems at KPTC, the Government entered into a ‘rescue contract’ with the Corporation to purchase 196 houses on portion of the Ruaraka Land to house Police Officers from the General Service Unit (GSU). The Government paid part of the purchase price but the deal was never completed due to court cases and related complications. On the same land but on different portions, a school and a chief’s camp had been built.
Does the charge on the land by both Continental Credit and KPTC still stand and is the title deed still held by the Official Receiver? If not, why? Is the NLC aware and why is it skirting around this part of the land's history?
How did the compensation for the Ruaraka Land come about?
Sometime in 2012, Afrison Export Import Ltd and Huelands Ltd sued the Government of Kenya (Civil Case No 617 of 2012) demanding Sh6,450,000,000 (6.4billion) as compensation over what the two firms claimed was illegal occupation of private land by public entities.
Prior to going to Court, Afrison Export Import Ltd together with Huelands Ltd had written several letters demanding that the Government removes public utilities constructed on their land or compensates them.
In response and to safeguard public interests, the then Minister for Provincial Administration and Internal Security, the late Prof. George Saitoti formed an Inter-ministerial Task Force on October 24, 2011, to investigate the Ruaraka Land issue and come up with recommendations on way forward.
The task force recommended among other things, that the Government should take advantage of the willingness of both the registered owners and Official Receiver (for Continental Credit Finance Ltd) to complete the deal and transfer land as well as the completed houses on the other portion of land.
What happened to the plan and how were public funds secured in this arrangement?
3. High Court on Ruaraka Land
Justice Alfred Mabeya of the High Court ruled that the land rightfully belonged to Afrison Export & Import Ltd and Huelands Ltd and ordered that the owners be compensated Sh4,086,633,330. What prompted his 8-page judgment in view of the outstanding claims?
After the High Court ruling, a report from the Ministry of Education Quality Assurance Task Force recommended that the ministry recover the land and secure title to the school. Why didn’t the ministry implement the recommendation and or challenge the High Court ruling?
Why seek compensation in peacemeal?
Afrison successfully sued in 2012 demanding compensation for 37.4 acres occupied by the GSU. Three years later, it sued for the adjacent 58.6 acres. Shortly after, it wrote to the NLC complaining about 13 acres occupied by the two schools, which is part of the land it sued for in 2015. Mburu was all along claiming ownership of the entire 96 acres. Why didn't he sue for the entire parcel in 2012? Why sue again in 2015 then only approach the NLC for a portion of the same land?
What exactly did the government pay for in 1988?
Court and Parliament records indicate that the government through the Office of the President paid KPTC Sh64 million for a portion of the land. The sale agreement however did not list KPTC as the land owner, nor did it indicate the size of the land. How did the government pay for an unspecified piece of land to a party not listed as its owner? Auditor General Edward Ouko called for the arrest of Kanu-era officials that were party to the deal. Why has nothing been done to date?
How did City Hall come into the fray?
City Hall told Parliament that it was approached for subdivision of the controversial land in 1994, but that it rejected the valuation. Why did City Hall reject the valuation presented to it?
Auditor General Edward Ouko said in his 2013-2014 probe that City Hall had issued allotment letters to various individuals who built churches, schools and other developments on part of the land. How did the land end up in City Hall's hands from the national government?
What role AG, NLC and the Education ministry?
The three government institutions corresponded for over one year. Which one misled the others? Who are the people directly responsible for the misleading? Why have they not been questioned? Why didn’t the AG's office inform the NLC and Education ministry that there was a court order barring payment for the land?
Expeditious compensation
Within a year of complaining about the 13-acre parcel hosting the two schools, Mburu had received half the claimed amount of Sh3.2billion.
Compensation from government is a headache for both public and private entities. In 2012, Orbit Chemicals was awarded Sh6 billion for a 95.2-acre piece of land grabbed by top government officials. The firm is yet to receive a cent six years later despite obtaining several court orders.
Hundreds of former military officers have been given awards of millions for the torture they underwent in the 1982 attempted coup. Their predicaments pale in the Ruaraka melodrama.