The government has acquired the iconic City Cabanas in Nairobi at Sh. 1.5 billion. The City Cabanas is a prominent restaurant that is located at the junction of the Nairobi-Mombasa highway and Airport North Road.
According to the transfer documents, the money was paid in installments of Sh. 1 billion, Sh. 522.3 million and Sh. 25 million into the accounts of businesswoman Rose Njeri.
This buyout was done despite despite the High Court barring National Lands Commission from transacting over the land until a case in court is determined.
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The money was paid out as compensation for compulsory acquisition of land where the hotel sits for construction of the Nairobi Expressway. The government, through Nairobi Metropolitan Services, is also planning to build a traffic control center on the ground. The design of a new Integrated Traffic Management Center (TMC) for Nairobi has been completed, paving the way for its construction. Construction costs have been estimated at Sh. 1.9 billion, with construction scheduled for later this year.
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On December 11, last year, the High Court in Nairobi gave an injunction for payment of the cash to Rose Njeri Macharia, the proprietor of City Cabanas and Cabanas park until the land dispute with Simandi Investments Limited was determined.
Justice Samson Okong’o ordered that no payment should be made by the NLC on behalf of Kenya National Highways Authority (KeNHA) to Ms Macharia for the LR NO 209/11293/1.
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Being a prime property, City Cabanas has seen the emergence of multiple titled claiming ownership. Some titles purported to be for the land are captured in the land information management system as being situated in Machakos county and in favour of a third party.
