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Landowners cry foul as Kenya Railways fails to honour SGR deal




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Rusty gates. Deserted homes. Hollowness. The elite residential neighbourhood of Langau in Ongata Rongai that beamed with life just five years ago is a pale shadow of its former self.

Palatial homes that dotted the area now lie in sordid rubble and gloom.

The fortunes of the area have dramatically changed, thanks to the standard gauge railway.

If Mr Joseph Alukwe had his way, the SGR would never have passed through his land.

Mr Alukwe, 50, from Olooltepes, says his life was destabilised four years ago by one of the Jubilee government’s signature projects.

When the area was marked for the line in 2014, Kenya Railways informed the blind man that the government would only compensate him for the structures on his piece of land.

Any future projects would not be considered for the payout.

Since then, his one-acre piece of land has been lying idle, save for his three-bedroom house.

China Road and Bridge Corporation workers pulled down several structures on his plot while erecting pillars for a bridge meant for the railway line.

Not even his wife’s grave will be spared when the line is finally laid.

To Mr Alukwe and his family, the railway project has brought untold misery.

Mr Alukwe’s grievances mirror the misery of hundreds of other families in Ongata Rongai and Ngong, whose land was taken by the government for the grand project.

From poor compensation terms, delayed payouts and unreliable information from the government, landowners now believe Kenya Railways is deliberately short-changing them.

A month after the National Land Commission said the government had released more than Sh10 billion for compensation, many families are yet to get a cent.

To make matters grave, Kenya Railways remains guarded on the subject.

Of the Sh10.2 billion received, only Sh4 billion has been released for payment so far, according to the NLC.

“A special team has been formed to speed up compensation in order to enable the contractor [to] access the land and complete the project on time,” the commission said in a statement.

Landowners — particularly in the Ngong station, Mai Mahiu and Suswa sections of the SGR — have not submitted their title deeds and other necessary documents, arguing that the rates offered by the government are too low and unfair.

“The government promised fair compensation when the valuation of land was done last year. We would be compensated according to the market value of the land,” a dejected Mr Alukwe told the Nation.

“In circumstances that are not clear, the award was halved. We were told it was a directive from the President.”

The development means families cannot buy land in neighbouring areas.

A quarter of an acre of land in Ongata Rongai, Ngong and neighbouring areas goes for slightly more than Sh4 million, but the government insists on paying Sh2 million, residents say.

“Where will I get land and build a house with that amount? I have developed this place for 10 years. If I don’t get the value for my property, it will take me years back,” Mr Alukwe said.


Residents say they wrote a “genuine” complaint to the government two months ago but have not receive feedback from State officials or Kenya Railways.

Curiously, the landowners were not involved in the valuation.

Even owners of residential and commercial buildings say they feel cheated.

A property owner saw half of his two-storey apartment complex demolished to pave the way for the project.

Despite his demands for full compensation, Kenya Railways said it would only pay for the demolished section. No explanation was given for the decision.

Tenants moved out when multiple structural assessments showed that the remaining rooms were not habitable.

The dispute has prompted some landowners to block the implementation of the project until Kenya Railways listens to their grievances and acts accordingly.

China Road and Bridge Corporation has, in the meantime, skipped the disputed sections and proceeded with other areas in a race to meet the 54-month deadline.

“If the government had paid me, I would be long gone. I would have bought land elsewhere and constructed a house. The longer the government takes to compensate us, the higher the value of the land gets,” Mr Alukwe added.

In some areas, the contractor had to give money to families to move.

However, the families are back on their lands due to the delayed compensation by the government. And they insist on remaining.

Because of the protracted dispute, CRBC has laid off many casual employees.

Machines have also been grounded.

Already, the Chinese company has signalled that the project may not be completed within the set timelines.

Initially, the government gave the families three months to leave after being compensated.

The period was later reduced to 45 days, and further down to a month.

“It is unrealistic for the government to ask us to leave when we have not been compensated. Where are we expected to go? Does this government really care?” Mr Alukwe asked.

While admitting that some property owners have refused to leave, Ongata Rongai and Ngong residents fault the State for using the same “brutal” tactics on those who have co-operated with the authorities.

“The government should deal with those blocking the project and be fair to the rest of us. Why should everybody suffer because of the mistakes of a few?” asked Mr Anthony Ngugi, a resident.

He added that many residents have inflated the value of their land.

Residents of Kajiado County say it is not their business if the money meant for compensation has been stolen by government functionaries.

“The government should sort out the mess and compensate us since that is what the law says,” said an Ongata Rongai local who did not wish to be named.



Sordid tale of the bank ‘that would bribe God’




Bank of Credit and Commerce International. August 1991. [File, Standard]

“This bank would bribe God.” These words of a former employee of the disgraced Bank of Credit and Commerce International (BCCI) sum up one of the most rotten global financial institutions.
BCCI pitched itself as a top bank for the Third World, but its spectacular collapse would reveal a web of transnational corruption and a playground for dictators, drug lords and terrorists.
It was one of the largest banks cutting across 69 countries and its aftermath would cause despair to innocent depositors, including Kenyans.
BCCI, which had $20 billion (Sh2.1 trillion in today’s exchange rate) assets globally, was revealed to have lost more than its entire capital.
The bank was founded in 1972 by the crafty Pakistani banker Agha Hasan Abedi.
He was loved in his homeland for his charitable acts but would go on to break every rule known to God and man.
In 1991, the Bank of England (BoE) froze its assets, citing large-scale fraud running for several years. This would see the bank cease operations in multiple countries. The Luxembourg-based BCCI was 77 per cent owned by the Gulf Emirate of Abu Dhabi.  
BoE investigations had unearthed laundering of drugs money, terrorism financing and the bank boasted of having high-profile customers such as Panama’s former strongman Manual Noriega as customers.
The Standard, quoting “highly placed” sources reported that Abu Dhabi ruler Sheikh Zayed Sultan would act as guarantor to protect the savings of Kenyan depositors.
The bank had five branches countrywide and panic had gripped depositors on the state of their money.
Central Bank of Kenya (CBK) would then move to appoint a manager to oversee the operations of the BCCI operations in Kenya.
It sent statements assuring depositors that their money was safe.
The Standard reported that the Sheikh would be approaching the Kenyan and other regional subsidiaries of the bank to urge them to maintain operations and assure them of his personal support.
It was said that contact between CBK and Abu Dhabi was “likely.”
This came as the British Ambassador to the UAE Graham Burton implored the gulf state to help compensate Britons, and the Indian government also took similar steps.
The collapse of BCCI was, however, not expect to badly hit the Kenyan banking system. This was during the sleazy 1990s when Kenya’s banking system was badly tested. It was the era of high graft and “political banks,” where the institutions fraudulently lent to firms belonging or connected to politicians, who were sometimes also shareholders.
And even though the impact was expected to be minimal, it was projected that a significant number of depositors would transfer funds from Asian and Arab banks to other local institutions.
“Confidence in Arab banking has taken a serious knock,” the “highly placed” source told The Standard.
BCCI didn’t go down without a fight. It accused the British government of a conspiracy to bring down the Pakistani-run bank.  The Sheikh was said to be furious and would later engage in a protracted legal battle with the British.
“It looks to us like a Western plot to eliminate a successful Muslim-run Third World Bank. We know that it often acted unethically. But that is no excuse for putting it out of business, especially as the Sultan of Abu Dhabi had agreed to a restructuring plan,” said a spokesperson for British Asians.
A CBK statement signed by then-Deputy Governor Wanjohi Murithi said it was keenly monitoring affairs of the mother bank and would go to lengths to protect Kenyan depositors.
“In this respect, the CBK has sought and obtained the assurance of the branch’s management that the interests of depositors are not put at risk by the difficulties facing the parent company and that the bank will meet any withdrawal instructions by depositors in the normal course of business,” said Mr Murithi.
CBK added that it had maintained surveillance of the local branch and was satisfied with its solvency and liquidity.
This was meant to stop Kenyans from making panic withdrawals.
For instance, armed policemen would be deployed at the bank’s Nairobi branch on Koinange Street after the bank had announced it would shut its Kenyan operations.
In Britain, thousands of businesses owned by British Asians were on the verge of financial ruin following the closure of BCCI.
Their firms held almost half of the 120,000 bank accounts registered with BCCI in Britain. 
The African Development Bank was also not spared from this mess, with the bulk of its funds deposited and BCCI and stood to lose every coin.
Criminal culture
In Britain, local authorities from Scotland to the Channel Islands are said to have lost over £100 million (Sh15.2 billion in today’s exchange rate).
The biggest puzzle remained how BCCI was allowed by BoE and other monetary regulation authorities globally to reach such levels of fraudulence.
This was despite the bank being under tight watch owing to the conviction of some of its executives on narcotics laundering charges in the US.
Coast politician, the late Shariff Nassir, would claim that five primary schools in Mombasa lost nearly Sh1 million and appealed to then Education Minister George Saitoti to help recover the savings. Then BoE Governor Robin Leigh-Pemberton condemned it as so deeply immersed in fraud that rescue or recovery – at least in Britain – was out of the question.
“The culture of the bank is criminal,” he said. The bank was revealed to have targeted the Third World and had created several “institutional devices” to promote its operations in developing countries.
These included the Third World Foundation for Social and Economic Studies, a British-registered charity.
“It allowed it to cultivate high-level contacts among international statesmen,” reported The Observer, a British newspaper.
BCCI also arranged an annual Third World lecture and a Third World prize endowment fund of about $10 million (Sh1 billion in today’s exchange rate).
Winners of the annual prize had included Nelson Mandela (1985), sir Bob Geldof (1986) and Archbishop Desmond Tutu (1989).
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Agricultural Development Corporation Chief Accountant Gerald Karuga on the Spot Over Fraud –




Gerald Karuga, the acting chief accountant at the Agricultural Development Corporation (ADC), is on the spot over fraud in land dealings.

ADC was established in 1965 through an Act of Parliament Cap 346 to facilitate the land transfer programme from European settlers to locals after Kenya gained independence.

Karuga is under fire for allegedly aiding a former powerful permanent secretary in the KANU era Benjamin Kipkulei to deprive ADC beneficiaries of their land in Naivasha.

Kahawa Tungu understands that the aggrieved parties continue to protest the injustice and are now asking the Ethics and Anti-corruption Commission (EACC) and the Directorate of Criminal Investigations (DCI) to probe Karuga.

A source who spoke to Weekly Citizen publication revealed that Managing Director Mohammed Dulle is also involved in the mess at ADC.

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Dulle is accused of sidelining a section of staffers in the parastatal.

The sources at ADC intimated that Karuga has been placed strategically at ADC to safeguard interests of many people who acquired the corporations’ land as “donations” from former President Daniel Arap Moi.

Despite working at ADC for many years Karuga has never been transferred, a trend that has raised eyebrows.

“Karuga has worked here for more than 30 years and unlike other senior officers in other parastatals who are transferred after promotion or moved to different ministries, for him, he has stuck here for all these years and we highly suspect that he is aiding people who were dished out with big chunks of land belonging to the corporation in different parts of the country,” said the source.

In the case of Karuga safeguarding Kipkulei’s interests, workers at the parastatals and the victims who claim to have lost their land in Naivasha revealed that during the Moi regime some senior officials used dubious means to register people as beneficiaries of land without their knowledge and later on colluded with rogue land officials at the Ministry of Lands to acquire title deeds in their names instead of those of the benefactors.

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“We have information that Karuga has benefitted much from Kipkulei through helping him and this can be proved by the fact that since the matter of the Naivasha land began, he has been seen changing and buying high-end vehicles that many people of his rank in government can’t afford to buy or maintain,” the source added.

“He is even building a big apartment for rent in Ruiru town.”

The wealthy officer is valued at over Sh1.5 billion in prime properties and real estate.

Last month, more than 100 squatters caused scenes in Naivasha after raiding a private firm owned by Kipkulei.

The squatters, who claimed to have lived on the land for more than 40 years, were protesting take over of the land by a private developer who had allegedly bought the land from the former PS.

They pulled down a three-kilometre fence that the private developed had erected.

The squatters claimed that the former PS had not informed them that he had sold the land and that the developer was spraying harmful chemicals on the grass affecting their livestock and homes built on a section of the land.

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Naivasha Deputy County Commissioner Kisilu Mutua later issued a statement warning the squatters against encroaching on Kipkuleir’s land.

“They are illegally invading private land. We shall not allow the rule of the jungle to take root,” warned Mutua.

Meanwhile, a parliamentary committee recently demanded to know identities of 10 faceless people who grabbed 30,350 acres of land belonging to the parastatal, exposing the rot at the corporation.

ADC Chairman Nick Salat, who doubles up as the KANU party Secretary-General, denied knowledge of the individuals and has asked DCI to probe the matter.

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