The Kenya Forum | Nairobi City County Government Ksh250,000,000 Fraud Allegations - The Kenya Forum

May 21, 2024

Summary

Recommendations to charge the Director of Kuza Farm Ltd, the Company, the County Attorney NCCG, the Director Legal Affairs, NCCG and the Chief Officer NCCG

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Nairobi City County Government Ksh250,000,000 Fraud Allegations

Nairobi City County Government Ksh250,000,000 Fraud Allegations

Investigations into allegations of fraudulent payment of KSh 250,000,000 made by the Nairobi City County Government in favour of Kuza Farm and Allied Limited as compensation for the acquisition of land (Land Parcel No. LR 209/11887 I.R 58301) located in Industrial Area Nairobi during the financial year 2019/2020.

The Ethics and Anti-Corruption Commission (EACC) commenced investigation after receiving an allegation that there was conspiracy to defraud the Nairobi City County Government of KSh 250,000,000 in irregular compensation to Kuza Farm and Allied Ltd for a land parcel located in Industrial Area- Nairobi during the FY 2019/2020.

Investigations established that in 1993 Kuza Farm acquired the land regularly. The parcel of land is currently developed with public utilities including A. E. F Reuben Primary School, Nursery School, Health Centre, Vocational Training Centre, Maternity Centre, Congregation of Christian Brothers offices and buildings for social work.

Kuza Farm ‘Irregular Payment’

Investigations established that in the year 2014 Kuza Farm filed civil suit seeking orders for compensation and vacation of the land by the Nairobi City County Government (NCCG) since public utilities were developed on the land by the NCCG.

Investigations established that the NCCG entered into a consent with Kuza Farm. The consent was adopted by the Court and a decree was thereafter issued. One of the conditions of the decree was that Kuza Farm was to be paid KSh 250,000,000 upon clearing all encumbrances registered against the title of the land.

Post Bank Credit Ltd

Investigations have established that on 17th July, 2020 the NCCG paid Kuza Farm KSh 250,000,000. The payment to Kuza Farm was irregular since the title of the Land in question had been charged to Post Bank Credit Ltd for a sum of KSh 1,650,000,000. This meant that Kuza Farm was paid yet the land was charged.

Investigations also established that Kuza Farm and its Director who actively participated in the meeting that brought forth the compensation were culpable for unlawfully acquiring public property because they were paid KSh 250,000,000 yet the title of the land had been charged to Post Bank Credit Limited.

Investigations established that the County employees at the NCCG Legal Department who were in charge of enforcing the Court Decree, together with other officers who were involved in processing the payment in favour of Kuza Farm, supported the irregular payment of KSh 250,000,000 and were culpable of abuse of office.

EACC Recommends Charges

On 13th February, 2024 a report was compiled and forwarded to the DPP with recommendations to charge the Director of Kuza Farm Ltd, the Company, the County Attorney NCCG, the Director Legal Affairs, NCCG and the Chief Officer NCCG with the following offences:-

(i) One count of conspiracy to commit an offense of corruption contrary to section 47A as read with section 48 of the Anti- Corruption and Economic Crimes Act, 2003.

(ii) One count of unlawful acquisition of public property contrary to section 45 (a) as read with section 48 of the Anti- Corruption and Economic Crimes Act, 2003.

(iii) Two counts of abuse of office contrary to section 46 as read with section 48 of the Anti- Corruption and Economic Crimes Act, 2003.

The DPP response is awaited.

Primary Source the Kenya Gazette

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