The High Court in Nairobi has blocked the prosecution of eight Telkom Kenya managers in a dispute over the surrender of Sh15 billion land for construction of a sports arena.
The telecommunications service provider’s CEO Mugo Kibati and directors Michael Ghossein, Loise Allella, Eddy Njoroge, Jinaro Kibet, Dorcas Kombo and Sayyid Said moved to court seeking to block private prosecution over the 90-acre land on Ngong Road.
They argued that Postel Housing Co-operative Society Ltd and Stephen Magoma intended to prosecute them privately over the prime property despite the Environment and Lands Court (ELC) affirming that the land belongs to Telkom.
Justice Chacha Mwita issued the orders, noting that it would be unfair to charge them before a magistrate’s court while there is a pending case before the High Court.
He said if the case succeeds, then, they will be left in a precarious situation. “This leaves a factual situation where they may be called upon to take plea anytime, which will change the character of their case as they await the hearing and determination of their appeal.
“This, in my view, is real and foreseeable loss or prejudice that cannot in any way be remedied if stay is declined and eventually the appeal succeeds,” said Justice Mwita.
It is not the first time the property is at the heart of a court case.
In 2021, Telkom sued the Attorney General over the government’s move to compulsorily acquire the land to build Posta Sports Grounds.
The parastatal also roped in Sports, culture and Heritage ministry, arguing that the compulsory acquisition was illegal.
Telkom acquired the land from the defunct Kenya Posts and Telecommunication Corporations.
“The suit property is currently valued at approximately Sh15 billion and the petitioner (Telkom) is apprehensive that should this honourable court not grant the orders as prayed herein, the first respondent will continue to illegally construct the “Posta Sports Grounds” in further deprivation of the petitioner’s constitutional right to property thereby causing the petitioner irreparable loss and damage that is not capable of being compensated by an award of damages,” argued Telkom in the suit.
Telkom claimed that it had protested several times to the Sports ministry but the Cabinet Secretary did not respond.
At the same time, it argued that it had not been compensated before the takeover.
“The petitioner was surprised to learn that on June 10, 2020 the first respondent (Sports ministry) invited tenders for the construction of Posta Sports Grounds on the suit property without its consent or following the compulsory acquisition process,” court papers read.
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Court papers read that earlier, on September 29, 2017, the Ministry of Public Service, Youth and Gender Affairs gazetted the same land for compulsory acquisition.
The intent was to establish jua kali operations centre. According to Telkom, the same property had been claimed by Aftraco Ltd and Exclusives Estates Ltd.