Trader loses bid to reclaim prime plot near the JKIA
By Benson WambuguA businessman has lost a bid to reclaim a five-acre parcel of land near the Jomo Kenyatta International Airport despite erecting go-downs and an office block that earned him at least Sh7 million every month.
Environment Land Court judge Anne Omollo ruled that Vekariya Investments Limited could not lay claim to the multi-billion shilling property as it had already been allocated to the Kenya Airports Authority.
The judge said the actions of former Commissioner of Lands Sammy Mwaita, who incidentally was a director of Senator Services- a firm that sold the parcel to Vekariya Investments, could not validate an illegal process.
Justice Omollo further dismissed a claim for compensation of Sh7.9 billion sought by Manji Ravji Vekariya, a director of Vekariya Investments. She said the same should be borne by Senator Services.
However, she further ruled that half of the compensation of Sh7.9 billion should be met by Mr Vekariya for going ahead with the construction of go-downs and the offices, despite being stopped by the KAA.
Mr Vekariya told the court that he purchased the land in 2009 from Senator Services for Sh25 million and constructed 22 go-downs that earned him Sh310,000 per month each and office blocks that fetched him Sh300,000 monthly.
The businessman said the cancellation of the title deed had caused him to lose future income for the remainder of the leasehold term of 84 years amounting to Sh7.1 billion.
But the judge ruled that the title of Vekariya Investments having been rendered invalid was not entitled to compensation for the value of the land.
“When the businessman purchased the land from Senator Services, his advocates must have known from the documents presented to them that one of the directors of the vendor was also the Commissioner of Lands,” observed Justice Omollo.
According to the judge, this should have raised their eyebrows as to whether it was regular that the public officer could allocate the land to a company that was linked to him.
Mr Vekariya informed the court he was looking for land to construct commercial go-downs and factories in Nairobi sometime in 2008.
He said he found a seller- Senator Services- and after carrying out a search on the property on December 15, 2008, with the registrar of titles, the search revealed that Senator Services was the owner of the land.
The tycoon further carried out a broad historical search of the land and the adjacent land at the Ministry of Lands and discovered several registrations on adjacent parcels to other parties.
And relying on the issued searches and material representations by the Ministry of Lands and KAA, the company purchased the land for Sh25 million on February 10, 2009.
Soon after the transfer, Mr Vekariya carried out extensive developments on the land to its current state and commercial usage with various improvements.
This included the 22 go-downs, a three-floor office block, water tanks (overhead and underground tanks), a borehole, Kenya Power (630KV) power connection, a transformer house, a guard house, septic tanks, a generator and big crane.
Mr Vekariya moved to court in November 2011 after KAA threatened to demolish his property despite obtaining a restraining court order.
He then filed the case before the ELC seeking to be declared the owner of the property or in the alternative to be compensated Sh7.9 billion for the loss.