Gachagua family loses Sh 1 billion

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The National Land Commission (NLC) has revoked the title deed for a 1.2-acre piece of land in Lang’ata owned by former Nyeri governor Nderitu Gachagua’s family, sparking a fresh war over the prime property that is valued at more than Sh1 billion.

The NLC on July 17 published a gazette notice revoking the title deed, barely three months after it expressed intentions to purchase the prime property “at competitive market rates” in line with compulsory acquisition provided for in Kenyan laws.

The land, which hosts 80 middle-class apartment units, is registered to Vipingo Beach Resort Limited, which is owned by the family of the former Nyeri governor who died in February.

The firm has obtained a court order temporarily suspending NLC’s revocation.

Vipingo Beach’s lawyer, Njoroge Regeru, says the NLC’s decision violates another court judgment delivered in 2015, which confirmed the firm as legal owner of the land and barred the NLC from interfering with its possession and enjoyment of the prime property.

The NLC did not appeal against the judgment at the time. In March, the commission issued a notice of inquiry through a gazette notice, but U-turned less than three months later by holding a fresh review of the property which led to revocation of Vipingo Beach Resort’s title deed.

The NLC in its review ruled that the land was gazetted as a road reserve and intends to hand it over to the Kenya National Highways Authority (KeNHA) for expansion of the Southern Bypass.

The NLC and KeNHA are yet to respond to the suit.

Vipingo Ridge adds in its court filings that individuals who bought the 80 apartments put up on the land slapped it with demand letters for compensation after seeing the NLC’s earlier gazette notice of intention to acquire the property compulsorily.

“Upon publication of the aforesaid gazette notice for compulsory acquisition, the purchasers of the apartments on the suit property repudiated the contracts and they are claiming compensation from Vipingo Beach Resort Limited,” says Rigathi Gachagua, a Vipingo Beach resort director and brother of the deceased former Nyeri governor.

“The purported review of Vipingo Beach’s title to the suit property was a pitiful attempt by the NLC and KeNHA to illegally acquire the suit property and was in contravention of the 2016 judgment which declared Vipingo Beach the lawful owner of the suit property,” the firm’s lawyer Mr Regeru adds.

The former governor had an 89.94 per cent stake in Vipingo Beach Resort. His daughter Susan has a 10 per cent stake, while his son Kenneth owns 0.05 per cent of Vipingo Beach Resort Limited. Mr Gachagua’s brother, Rigathi, owns the other 0.01 per cent of shares.

The suit papers do not indicate when Mr Gachagua acquired the land. But the former governor’s brother says Vipingo Beach’s owners had in 2009 resolved to develop 80 apartments on the land.

Vipingo Beach, in a suit filed against the Roads ministry, Attorney- General Githu Muigai, Kenya Railways Corporation and KeNHA in 2012 that was determined by Justice Mary Gitumbi three years later, claimed that the land was then valued at more than Sh800 million.

 

Compiled by Collins Gathogo.