GOVERNMENT BUYS ICONIC NAIROBI CLUB.

The government has finished the compulsory acquisition of the famous City Cabanas along Mombasa Road at a cost of Ksh1.5 billion in a transaction that has been termed as controversial. 

Hotel owner Rosaline Njeri Macharia was paid the money by the National Lands Commission on behalf of the Kenya National Highways Authority (KeNHA).

According to the transfer documents, the money was paid in installments of Ksh1 billion, Ksh522.3 million and Ksh25 million to the businesswoman’s accounts.

Entrance to the famous City Cabanas Hotel in Nairobi
Entrance to the famous City Cabanas Hotel in NairobiFILE

The compulsory acquisition of businesses along Mombasa Road for the construction of the Nairobi Expressway will see the government fork out billions in compensation. 

The government, through the Nairobi Metropolitan Services also plans to construct a traffic control centre on the piece of land. 

The design of a new Integrated Traffic Management Centre (TMC) for Nairobi is complete, paving the way for its construction.

The construction costs have been estimated at Ksh1.9 billion with the ground breaking scheduled for later this year. 

However, the project risks delays after businessman Simon Ondiba lodged a claim on the land.

In court papers, he argued that he acquired the land in 1994 after he bought it from the Kenya National Chamber of Commerce and Industry for Ksh60 million.

He added that the NLC investigated the matter and established that the land belonged to him.

On her part, Rosaline also claimed to have bought the land from the KNCCI in the same year at Ksh45 million and an informal transfer was effected. 

She added that she operated the hotel for years without dispute about the land ownership.

Sourced from Kenyans.co.ke

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