In a significant victory for Telkom Kenya, the court has issued an order compelling the government to pay the telecom company a substantial sum of Kshs 15.0 bn as compensation for forcibly acquiring a 60.0-acre parcel of land on Ngong Road in Nairobi and using it to establish a sports complex. The court found that the government’s actions violated Telkom’s property rights, and as a result, it is entitled to compensation.
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Justice Oguttu Mboya of the Environment and Land Court made it clear that the land rightfully belonged to Telkom Kenya and held the Ministry of Sports responsible for bearing the compensation costs. However, the court decided to suspend the execution of the ruling for 30 days, potentially allowing the Attorney-General to pursue an appeal. To account for the breach of rights, Justice Mboya ordered that the damages attract an interest rate of 14.0% from the date of the judgment until the full payment is made. This victory comes at a crucial time for the company, as it has been grappling with mounting financial pressures.
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Despite this positive development, it’s worth noting that the victory comes somewhat belatedly, as the Kenyan government now completely owns the telecommunications firm. The government’s plans to acquire the land through the National Land Commission in 2017 faced delays due to disputes with other parties claiming ownership. The court dismissed petitions from Postel Housing Co-operative, Aftraco Ltd, and Exclusives Estates Ltd, clearing the way for Telkom’s claim to be recognized. The legal battle over the land had seen various twists and turns involving different entities and claimants.
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Now, with the court ruling in favor of Telkom Kenya, the government must comply with the compensation order and address the historical property rights issue. However, the situation may still evolve depending on any potential appeals or further legal.
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