Sh1.6billion payout to Njeri Macharia for Nairobi Expressway haunts NLC, KeNHA years later

The Sh1.6billion payout to the owner of a city hotel as compensation for compulsory acquisition of land for construction of the Nairobi Expressway by the Kenya National Highways Authority (KeNHA) and the National Land Commission (NLC) has continued to haut the two entities a decade later.

The payment was done despite the High Court barring NLC from transacting over the land until a case in court is determined over a parcel of land where City Cabanas restaurant sits.

Yesterday, justice Samson Angote agreed that both KeNHA and NLC were key in resolving the dispute over the ownership of the land, which has been pending in court for about a decade.

On December 11, 2020, the High Court in Nairobi gave an injunction for payment of the cash to Rosaline Njeri Macharia, the proprietor of City Cabanas and Cabanas park until the land dispute with Simandi Investments Limited was determined.

Justice Samson Okong’o ordered that no payment should be made by the NLC on behalf of Kenya National Highways Authority (KeNHA) to Macharia for the LR NO 209/11293/1.

Later, the judge allowed NLC to pay Macharia half of the amount pending the ruling on the land dispute.

Simandi Investment Limited through its directors Simon Nyamanya Ondiba and Mary Nyamanya moved to court in 2016 to challenge a title deed held by Rosaline Njeri Macharia.

Appearing before Justice Angote, Ondiba through his lawyer Harry Arunda said he had served KeNHA and NLC with the court documents and the hearing notice, but they failed to appear for the hearing.

Lawyer Ochieng’ Oduol for Macharia said the presence of the two institutions was key in resolving the matter, as they were in possession of documents concerning the land.

Justice Angote adjourned the matter to May 22, 2025 for directions and also give a ruling on an application by Simandi Investment, for the expungement of some affidavits filed by Macharia in defence of her title documents.

In the dispute, Samandi Investment claimed to have purchased the land for Sh60million in July 1994 from the Kenya National Chamber of Commerce and Industry (KNCCI).

He said they later subdivided the land into two portions and all was well until August 2016 when the land was invaded and a perimeter wall erected around the land.

Simandi Investment claimed that Macharia continues to trespass the land.

“Macharia continues to trespass to the said land parcels and had in fact built a perimeter wall without the consent or authority of the plaintiff who is the legal, legitimate and rightful and registered owner of the property hence infringing on the plaintiff’s proprietary ownership rights,” Ondiba, Simandi Investment lawyer said.

An earlier application by Simandi Investment seeking to block the NLC from releasing Sh1.6 billion compensation to Macharia, for a portion taken by KeNHA for the construction of the Nairobi Expressway, was unsuccessful.

The businessman wants the court to order the cancelation or revocation of a title deed held by Macharia, which was issued on December 22, 1994.

On her part, Macharia contended that she was the genuine owner of the property and that the title held by Simandi Investments Ltd, was obtained fraudulently.
Macharia said she purchased the land from KNCCI in 1994 and the same was registered in her name on April 27, 1995.

She said the original title for the property was held by Guardian Bank Limited and had constructed the hotel- City Cabanas, which she had operated since 1995.

Macharia had opposed the case being heard by the Environment and Land Court, arguing that it should be handled by the Land Acquisition Compensation Tribunal.

Her lawyer, Arunda pointed out that his client,  Macharia, was not sure of how much she paid to acquire the land, since at some point, she claimed to have paid Sh45million and in another instance, she said she paid Sh24 million for the land.

And even with the two amounts, Arunda said there was no documentation to support the purchase from KNCCI.

“That when the transfer of L.R. No.209/11293/1 dated October 12, 1988 or 22nd December, 1994 for Kshs45 million from KNCCI to the 1st Defendant was investigated by the National Land Commission, the person said to have signed the transfer, a John Kipkemboi as the National Chairman Kenya National Chamber of Commerce and Industry disowned the signature and termed it a forgery,” Ondiba said in his application.

He said Macharia did not acquire the land lawfully and her title deed was a mistake and misrepresentation.