The High Court has ordered the government to pay two companies Sh1.9 billion as compensation for the construction of a railway line on a disputed parcel of land in Mombasa.
Environment and Land Court Judge Ann Omollo also suspended the construction of the Standard Gauge Railway (SGR) on the land belonging to Mombasa-based African Gas and Oil Company and Miritini Free Port.
Justice Omollo ordered Sh1.9 billion to be deposited in a joint escrow interest-earning account within 21 days as compensation.
The judge said the respondents would only be free to continue with the construction work of the railway once they comply with the court orders.
Justice Omollo also dismissed an application by the Kenya Railways Corporation (KRC) and the contractor, China Roads and Bridges Construction (CRBC) seeking to overturn a previous order that suspended construction of the SGR.
The two firms through lawyer Michael Oloo had moved before the court seeking to have the construction stopped pending the hearing and determination of their petition.
Lawyer Oloo had argued that before the government acquired the land, the firm had planned to put up a container freight terminal on it and the State had no reason to refuse to compensate it.
Kenya Railways through lawyer Cecil Miller however opposed the application saying it was losing approximately Sh38 million daily following the suspension of the SGR construction work.
“The petitioners claim is compensation, all they want is money. There is no need for conservatory orders to be granted, as they have a remedy in terms of money,” said Mr Miller on Thursday.