SH56B PENDING

NLC denies holding payout, blames state agencies for delay

Six entities yet to release billions to compensate government project affected persons

In Summary
  • The commission revealed the agencies are yet to release Sh56 billion to pay the persons affected by the projects.
  • They include Kenya National Highways Authority, Kenya Urban Roads Authority and Kenya Rural Roads Authority.
NLC chairman Gershom Otachi and CEO Kabale Tache
NLC chairman Gershom Otachi and CEO Kabale Tache
Image: ENOS TECHE

The National Land Commission has blamed state agencies charged with the implementation of projects for the delayed compensation of displaced Kenyans.

The commission said the agencies are yet to release Sh56 billion to pay persons affected by the projects.

They include Kenya National Highways Authority, Kenya Urban Roads Authority and Kenya Rural Roads Authority.

Others are Kenya Ports Authority, Kenya Airports Authority and Kenya Railways Corporation.

“The commission is yet to receive Sh56 billion from the above-acquiring entities,” NLC chairman Gershom Otachi said yesterday.

Otachi appeared before the Senate Roads and Transportation Committee, to explain the rationale behind the delayed compensation of thousands who surrendered their land for state projects.

The panel is chaired by Kiambu Senator Karungo Thang’wa.

According to the commission which is mandated to compensate persons affected by the projects upon receipt of funds by the implementing agencies, KeNHA is yet to remit Sh43 billion for compensation.

Kura has not released Sh1.2 billion, Kerra Sh500 million while Kenya Railways has yet to disburse Sh11 billion to NLC to pay Kenyans who surrendered land for projects.

“Most of these projects whose funds have not been received by the commission have since been completed by the acquiring entities,” Otachi said.

Some of the projects that have been completed but land owners are yet to be compensated include the Nairobi expressway, Siaya-Rwambwa road, Mwatate-Taveta road and Thika road.

Others are Thogoto-Gikambura road, Nairobi Northern Bypass road, Iten-Kapsowar road and Ejinja-Bumala road.

The agencies, the commission said, are implementing some 123 projects across the country with a compensation value of Sh139.44 billion.

“The agencies have since remitted to the commission Sh83.44 billion for compensation of the affected persons within the 123 projects,” he said.

Out of the amount, the commission has paid out Sh79.62 billion to the project-affected persons.

“It is worth noting that the commission has processed over 95 per cent of the compensation fund received from the acquiring entities to compensate the PAPs.”

“The commission is currently holding Sh3.95 billion whose payments are at various stages of processing,” Otachi said.

With regards to specific roads such as the Sh17 billion Nairobi Western Project, the unremitted amount to pay PAPs is Sh1.3 billion out of Sh1.9 billion.

The Nairobi expressway road project has unremitted amount of Sh10.3 billion yet the project costs is Sh 8.2 billion.

For the Kibwezi Mutomo road project, the unremitted amount is Sh1.6 billion as the commission has only received Sh344.4 million out of the required Sh1.9 billion.

For the James Gichuru Rironi road project, the commission is yet to receive Sh2.2 billion as they have only been sent Sh10.4 billion out of the total  Sh12. 6 billion.

In the Kenol Sagana Marua road project, the commission is yet to receive Sh2.4 billion out of Sh5 billion.

On the Mombasa Gate Bridge Project, it is divided into two main lots— the Mainland and the Island.

The commission said that on the Island section, inspection is still ongoing while the mainland is yet to start.

Thus the commission has yet to issue any awards since the project is in the initial stages.

Otachi said some of the land acquired for projects in the 1970s is yet to be vested to the acquiring entities, be it national and county governments.

“This means there are individuals and private institutions holding title to the land where public roads, airports, dams, railways and other facilities were built or located,” the commission said.

Finance director Ben Cherutich said most of the PAPs have died without receiving their monies due to the slow release of the funds.

He said, “Most of them have died having not received their funds because of budgetary issues. As you know the government is working on a tight budget.”

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