Home News Taxpayers to Foot Sh2 Billion Bill for Nakumatt Ukay Mall Demolition

Taxpayers to Foot Sh2 Billion Bill for Nakumatt Ukay Mall Demolition

The court orders the government to compensate Nakumatt Ukay Mall owners with over Sh2 billion.
The court orders the government to compensate Nakumatt Ukay Mall owners with over Sh2 billion. PHOTO/COURTESY
  • The court orders the government to compensate Nakumatt Ukay Mall owners with over Sh2 billion.
  • Justice Oguttu Mboya rules that four state agencies acted unlawfully in the demolition.
  • The compensation will accrue interest at 14% per year from 2019.

The Kenyan government has been ordered to pay Sh2,013,500,000 to the owners of Nakumatt Ukay Mall, which was brought down in 2018 following claims that it was constructed on riparian land.

Justice Oguttu Mboya found that four state the Office of the Attorney General, NEMA, Water Resource Management Authority, and Nairobi City County- violated the owners’ constitutional rights by arbitrarily demolishing the property.

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While the National Youth Service (NYS) played a role in the demolition, it was exempted from the compensation costs.

Flawed Demolition Process

The court ruled that the demolition was not only arbitrary but also a forced deprivation of property, violating Article 40 of the Kenyan Constitution. In addition to the property value compensation, the court awarded Sh50 million in exemplary damages, with a 14% annual interest backdated to January 22, 2019, when the case was filed.

Shifting Claims on Riparian Land

Nakumatt Ukay Mall, located in Westlands, was demolished after authorities alleged it had illegally redirected the Kibarage River. Initially, City Hall had cited unauthorized alterations to the structure and demanded submission of structural approvals.

However, after the owners provided the necessary documents, the county changed its stance and claimed the structure encroached on riparian land, leading to the eventual demolition.

This ruling highlights the legal and financial risks associated with government-led demolitions carried out without due process.