The Mombasa High Court has ruled that a section of the Standard Gauge Railway project construction should stop until the government compensates two companies Sh2 billion.
These two companies are African Gas & Oil Limited and Miritini Free Port moved to court after the Government failed to pay over Sh519 million.
A ruling made by Judge Anne Omollo ordered the respondents to deposit Sh519 million and Sh1.4 billion awarded to the petitioners in an escrow account.
The land in question had been the subject of an inquiry at public hearings in Mombasa that were conducted by the National Land Commission (NLC). After the inquiry, NLC ruled that Africa Gas acquired the land lawfully.
The government and railway contractors have been barred from "entering, constructing, excavating or demolishing" any structures on land belonging to the companies for 14 days.
This is the latest compensation feud to rock the Sh327 billion railway project whose construction is expected to be completed by mid next year.