Kenya: NLC Blames Six Road Construction Agencies in Sh56bn Compensation Row

5 September 2024

Nairobi — Six road construction agencies have been blamed for delays in compensating individuals displaced to make way for 123 road construction projects across the country.

The National Land Commission (NLC) has revealed that these agencies owe Sh56 billion in compensation to affected individuals, despite the projects being completed.

Appearing before the Senate Roads, Transportation, and Housing Committee, NLC Chairperson Gershom Otachi explained that the commission has been forced to handle compensation on a need-by-need basis due to financial constraints.

"All we can ask is for the agencies to make prompt payments. The National Land Commission is part of a chain. We don't have funds set aside for compensation. The government should not acquire public land without fully compensating the owners," Otachi stated.

A breakdown of the Sh 56 billion yet to be disbursed reveals that the Kenya National Highway Authority (KENHA) is yet to remit Sh 43 billion, the Kenya Railway Corporation owes Sh 11 billion, the Kenya Urban Roads Authority Sh 1.2 billion, and the Kenya Rural Roads Authority (KERRA) Sh 500 million.

The committee, led by Kiambu Senator Karungo Thangwa, heard that the Lands Commission is often forced to remit partial payments in cases where the individuals awaiting compensation are in dire need due to health or financial challenges.

"Sometimes, we release Sh 1 million because of a lack of funds, especially when a person awaiting compensation is ill and needs treatment," disclosed NLC CEO Kabale Tache.

"In such cases, we request KENHA to release partial amounts to support urgent needs, even if they can't provide the full sum."

Senator Thangwa called the delayed compensation a breach of the constitution, questioning why the road agencies have failed to release the required funds despite the projects being completed.

"The government owes people money but delays payments. When the public is removed from land, it's often done forcefully. We need laws to ensure prompt compensation," Thangwa insisted.

Kitui Senator Enock Wambua expressed concern that compensation is only expedited when affected individuals are ailing.

"It is unsettling to hear that funding is only released when an affected person is in the hospital. This situation is unacceptable," Wambua remarked.

Road agencies are yet to release compensation funds for several major projects, including the Nairobi Expressway, Thika Road, Siaya-Ruambwa, Mwatate-Taveta, Ejinja-Bumala, and Thogoto-Gikambura Roads projects.

Also pending are the Iten-Kapsowar, Limo Hospital-Illula, and Nairobi Northern Roads projects.

NLC attributed the backlog of compensation cases to budgetary constraints, with some claims dating back to the 1970s. Otachi explained that some funds cannot be released because, while they were budgeted for by the road agencies, the National Treasury failed to allocate the required amounts.

"The best solution is reallocating existing funds to resolve these cases, as some amounts were never budgeted for," he said.

It was revealed that the NLC is currently holding a balance of Sh 4 billion, yet to be disbursed to affected persons. However, Otachi clarified that this amount is tied up in court cases and disputes that are still pending.

"Payment is a continuous process, but challenges arise from litigation and parties failing to meet the necessary requirements," Otachi added.

Senator Wambua questioned why government agencies continue to violate the constitution by acquiring private land without compensating individuals in a timely manner.

"Poor people have been made destitute due to delayed compensation, to the point that road construction projects seem like a curse to them," he said.

NLC Finance Director Bernard Cherutich noted that many Project-Affected Persons (PAPs) have died without receiving their compensation due to budgetary delays.

"Many have passed away while waiting for their funds, as the government is working within a tight budget," Cherutich stated.

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