Court of Appeal nullifies Sh2.4bn Ruaraka compensation deal

Marek Sadowski
Marek Sadowski
Reports on procurement law, review decisions and how the rules change. Based in Warsaw.
3 Min Read

This piece explains what the ruling means when a court sets aside proceedings that authorised compensation for land acquired for a public project.

The finding

A three-judge Court of Appeal bench has overturned the High Court judgment that enabled a Sh2.4 billion compensation payment in the Ruaraka land dispute. Justices Wanjiru Karanja, Francis Tuiyott and William Korir declared the proceedings that sanctioned the payment a nullity. The decision concerns 37.4 acres acquired for the construction of GSU houses, forming part of the disputed Ruaraka property. In practical terms, the compensation arrangement no longer stands on the legal basis provided by the High Court judgment.

Why the procedure matters

The case concerns public land acquisition and compensation rather than the award of a conventional supply or construction tender. When land is acquired for a public purpose, the payment to an affected interest is handled through a legal process, and a court order can provide the authority for compensation to proceed. Here, the Court of Appeal has said the proceedings that authorised the payment were a nullity. That distinction matters to public bodies, landowners and businesses: a compensation agreement may depend on the validity of the legal process supporting it.

What the ruling changes

The ruling removes the High Court judgment that had paved the way for the multimillion-shilling payment and therefore nullifies the significant compensation deal at the centre of the saga. The source report does not state whether any money has already been paid, or what further proceedings may follow. It also does not establish wrongdoing by any party. The confirmed finding is narrower but consequential: the Court of Appeal rejected the proceedings that sanctioned the deal and overturned the earlier judgment.

IN NUMBERS
Sh2.4 billion
Compensation deal nullified by the Court of Appeal
37.4 acres
Land acquired for building GSU houses
Three
Judges on the Court of Appeal bench

The decision leaves the Ruaraka compensation arrangement without the court proceedings that had authorised it. Any next step will depend on further legal action or directions not set out in the ruling report.


Reported from standardmedia.co.ke, 2026-09-29. The Tender Wire is published by Otnox.

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Reports on procurement law, review decisions and how the rules change. Based in Warsaw.
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