Kenya Railways Corporation sued by traders in Nakuru

Dec, 7th 2020 – Kenya Railways corporation has been sued by two traders in Nakuru over demolishing their businesses to pave way for the railway construction.

Nakel Investments Limited and Falcon Service Station Limited were acquitted on Friday after Environment and Land Court issued orders temporarily barring the the state firm from using the land pending the hearing and determination of a case they have filed. 

A ruling by Justice Dalms Ohungo read, “A temporary injunction is hereby issued restraining the Kenya Railways, by themselves or their agents, from trespassing, alienating, constructing, leasing or transferring the parcels of land located within Nakuru town, pending hearing and determination of this application.”

The judge directed parties in the matter to file and serve written submissions 14 days before the hearing takes place. The orders remain until the 20th of January 2021 when the matter will be mentioned in Court.

Through lawyer Ahmednasir Abdullahi, the two companied sued the Kenya Railways over the evictions arguing that they were illegal. Nakel Investments Limited wants a compensation of Sh84,350,000 to cater for the demolition of Mercy International Business, two car wash bays, premises, machines and shops.

Falcon Service Station Limited on the other hand is seeking a special damages compensation of Sh312,094,000 for a motor vehicle yard, tyre center and the petrol station.

They argued that the demolitions caused them irreparable damages prompting them to seek general damages, loss of rental income and profits and costs of the suit.

The two companies had leased some acres of land from the Kenya Railways, Falcon 1.7 acres and Nakel Investments 1 acre. However, according to Kenya Railways documents filed in court, the lands in question were leased to six investors for 25 years. The companies claim that they had paid millions of shillings as security , rent deposit fees and goodwill.

Individuals and companies who had rented the land from Kenya Railways include, “Nakel Investment Limited, Falcon Service Station, Nicholas Njau Kiarie, Flagon Limited, Casuarina Limited and S K Towett.

The demolitions were as a result of the Nairobi-Nakuru-Kisumu meter gauge railway a project by engineers from the National Youth Service and The Kenya Defence Forces.

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