Controversy has erupted over the alleged reallocation of a parcel of land owned by Kenya Railways to a private developer in Nairobi’s Industrial Area.
The land in question, approximately four acres in size, has sparked outrage among neighboring industries. These companies, including East African Breweries Limited, Associated Battery Manufacturers, British American Tobacco, and Print Pak, are concerned because the developer has covered essential drainage and sewer lines on the property.
“We are alarmed by the situation. The area has already been backfilled, and we’re worried that any heavy rainfall could impact our drainage systems,” said Wilson Olando, Engineering Manager at ABM.
Despite raising their concerns with Kenya Railways, the industries have not received a timely response, and construction on the land continues.
“The development is illegal; the developer has proceeded without an Environmental Assessment Report, and our concerns remain unaddressed,” Olando added.
However, Kenya Railways Managing Director Phillip Mainga denied any land allocation to the developer, labeling the claims as misleading and incorrect.
“We have not given anyone that land. It remains under our control. Any issues regarding drainage should be addressed by the relevant government agencies,” Mainga said, noting that Kenya Railways has not received any formal complaints from the neighboring industries.
During a visit to the site, three men believed to be associated with the new land owners were uncooperative and refused to answer questions. Efforts to contact the alleged developer through provided company contacts were unsuccessful.
This situation is not the first time Kenya Railways has faced scrutiny over land allocations. Last year, reports revealed that the authority had distributed over 544 parcels of public land to individuals without proper authorization. An audit of KRC’s financial year 2018-19 accounts uncovered allocations of land at Limuru Railway Station, Kikuyu Railway Station, and several parcels adjacent to Mombasa Station, among others.
“Furthermore, another 529 parcels of land were illegally allocated across the country,” according to the Auditor General’s report. However, Kenya Railways management has sought legal intervention to reclaim twenty-seven of these parcels.
Mainga has previously defended the legitimacy of these land leases, explaining that the land was lawfully leased for development purposes, generating income for the corporation. For example, at Limuru, 1.05 out of 40 acres were allocated for go-downs, later subdivided into eight industrial plots.
“Kenya Railways issued leasehold grants for the development of go-downs and warehouses for a term of 99 years starting June 1, 1948,” Mainga explained. “These leases were registered with the Commissioner of Lands, and the grantees pay basic land rent to the corporation, which retains the freehold interest.”