Matiang'i among 22 ordered to repay Ksh.2.7 billion over Ruaraka land saga

The Ethics and Anti-Corruption Commission (EACC) has issued demand letters to 22 individuals and three companies seeking restitution of Ksh.1.5 billion paid over the controversial Ruaraka land acquisition, together with interest of 12 per cent per annum.

Among those named in the demand letters are Immigration Principal Secretary Belio Kipsang, Jubilee Deputy Leader Fred Matiang'i, former National Land Commission (NLC) Chairperson Muhammad Swazuri, former NLC commissioners and officials, as well as companies linked to the late businessman Francis Mburu's family.

The move follows a Court of Appeal decision that found the payment of Ksh.1.5 billion by the NLC over the acquisition of a 13-acre parcel of land in Ruaraka to have been illegal.

EACC says it has launched recovery proceedings against the individuals and companies it says were involved in the payment, which was made to compensate Afrison Export Import Limited and Huelands Limited for the acquisition of the land.

The Commission says its investigations are focused on allegations of abuse of office, embezzlement and money laundering of public funds, with the funds allegedly disguised as compensation for the land.

EACC has demanded that the parties jointly and severally pay Ksh.1.5 billion, together with interest at 12 per cent per annum from the date the funds were disbursed in 2018.

The Commission has given the individuals and companies seven days to remit the money, warning that it will institute recovery proceedings if the demand is not honoured.

"The Commission, in exercise of the statutory mandate, hereby demands from you jointly and severally Ksh. 1.5 billion in restitution together with interest at 12 per cent per annum from the date of disbursement of the funds," stated the commission. 

"Unless the said sum is received by the commission within 7 days, we shall institute recovery proceedings against you at your own risk as to costs and any other consequences without further reference to you."

Meanwhile, Huelands Limited, a company associated with the late Mburu's family, has moved to the Supreme Court seeking to overturn the Court of Appeal decision that paved the way for EACC to begin the recovery process.

In its appeal, Huelands has raised 11 grounds, arguing that the three-judge bench failed to distinguish lawful planning controls from compulsory acquisition of private property.

The company also argues that the Appellate Court failed to uphold constitutional protections on private property and security of title.

Huelands maintains that there was no loss of public funds and is asking the Supreme Court to direct the NLC to pay it a balance of Ksh.1.7 billion, being the outstanding amount of the approved Ksh.3.2 billion compensation for the land.

EACC has challenged the appeal, arguing that it amounts to an abuse of the court process.