The Ethics and Anti-Corruption Commission (EACC) has issued demand letters to 22 individuals and three companies seeking the recovery of KSh1.5 billion paid over the controversial acquisition of land in Ruaraka, Nairobi.

The anti-graft agency is also demanding 12 per cent annual interest on the amount, which was disbursed in 2018.

Among those named in the demand letters are Immigration Principal Secretary Belio Kipsang, Jubilee Deputy Leader Fred Matiang’i, former National Land Commission (NLC) Chairperson Muhammad Swazuri, former NLC commissioners and officials, as well as companies associated with the family of the late businessman Francis Mburu.

EACC Seeks Recovery of Ruaraka Funds

The recovery bid follows a Court of Appeal ruling that found the NLC’s payment of KSh1.5 billion over the acquisition of a 13-acre parcel of land in Ruaraka to have been illegal.

The money was paid as compensation to Afrison Export Import Limited and Huelands Limited for the acquisition of the property.

EACC says its investigations established allegations of abuse of office, embezzlement and money laundering of public funds, with the money allegedly disguised as compensation for the land.

The commission has now demanded that the individuals and companies named in the notices jointly and severally repay the KSh1.5 billion, together with interest calculated at 12 per cent per annum from the date the funds were disbursed.

“The Commission, in exercise of the statutory mandate, hereby demands from you jointly and severally Ksh. 1.5 billion in restitution together with interest at 12 per cent per annum from the date of disbursement of the funds,” the commission stated.

The recipients have been given seven days to make the payment.

“Unless the said sum is received by the commission within 7 days, we shall institute recovery proceedings against you at your own risk as to costs and any other consequences without further reference to you,” EACC warned.

Huelands Challenges Court of Appeal Decision

Meanwhile, Huelands Limited, a company associated with the late Mburu’s family, has moved to the Supreme Court seeking to overturn the Court of Appeal decision that paved the way for the recovery proceedings.

In its appeal, Huelands has raised 11 grounds, arguing that the three-judge bench failed to distinguish between lawful planning controls and the compulsory acquisition of private property.

The company also contends that the appellate court failed to uphold constitutional protections relating to private property and security of title.

Huelands maintains that the transaction did not result in any loss of public funds and is seeking an order directing the NLC to pay it KSh1.7 billion, which it says is the outstanding balance from an approved KSh3.2 billion compensation for the land.

EACC, however, has challenged the appeal, arguing that the move amounts to an abuse of the court process.

The Supreme Court proceedings could determine the next phase of the long-running dispute over the Ruaraka land payment and whether the KSh1.5 billion can ultimately be recovered from the individuals and companies targeted by EACC.