Supreme Court/FILEThe Supreme Court has temporarily stopped the Ethics and Anti-Corruption Commission (EACC) from recovering Sh1.5 billion paid as compensation for land occupied by Ruaraka High School and Drive-Inn Primary School.
In a ruling dated August 18, a seven-judge bench led by Chief Justice Martha Koome issued interim orders staying the execution of a Court of Appeal judgment delivered on July 3, pending the hearing and determination of a motion filed by Huelands Limited.
The orders bar implementation of the Court of Appeal judgment and consequential decretal orders, effectively putting on hold recovery efforts arising from the disputed compensation payment.
The Supreme Court directed Huelands to serve its application on the respondents, who have five days to respond.
The court further directed Huelands to file a reply, if any, within three days of receiving the response.
The application will come up on August 28 for further directions.
“Pending the hearing and determination of the Motion, there shall be an interim order staying the execution of the Judgment of the Court of Appeal dated 3rd July 2026 and consequential decretal orders, in the terms set out in prayers 3(a) to (d) of the Notice of Motion,” the court said.
The interim orders followed a Notice of Motion dated July 30, in which Huelands sought to stop enforcement of the Court of Appeal judgment.
The court did not determine the merits of Huelands' appeal but certified the application as urgent and granted interim protection pending its determination.
The order means EACC's efforts to recover the Sh1.5 billion will remain on hold as the Supreme Court considers the application.
EACC had moved to recover the money after the Court of Appeal upheld findings that the compensation was unlawful.
Following the July 3 judgment, the commission issued seven-day demand notices to 22 individuals and companies, requiring them to refund the Sh1.5 billion, together with interest.
The commission said its investigations established that the land on which Ruaraka High School and Drive-Inn Primary School stand had been surrendered to the government free of charge through an approved subdivision plan in 1983.
Despite the surrender, a compensation claim was lodged with the National Land Commission in 2017. EACC said Sh1.5 billion was subsequently paid to Afrison Export and Import Limited and Huelands Limited through Whispering Palms Estate Limited.
The commission said its investigations identified irregularities in the process leading to the payment involving public officials at the Ministry of Education and the National Land Commission.
It also said the funds were subsequently distributed to various individuals and entities. The legality of the compensation has previously been considered by the Environment and Land Court and the Court of Appeal.
The Environment and Land Court, in a judgment delivered on June 28, 2019, and the Court of Appeal, in its July 3, 2026 judgment, found the compensation unlawful. EACC subsequently began steps to recover the public funds and pursue possible criminal accountability against persons it said participated in, facilitated or benefited from the payment.
The Supreme Court's interim order, however, prohibits enforcement of the Court of Appeal judgment pending determination of the motion.
The interim protection also extends to investigations, arrests, charges or prosecutions arising from the payment, changes to the land register and measures affecting Huelands' occupation and registered proprietary interest in the disputed parcels.
The parcels include L.R. Nos. 7879/4, 7879/24 and 7879/25, which include portions occupied by the two public schools. EACC had separately challenged the Supreme Court's jurisdiction to hear and determine the appeal under Article 163(4)(a) of the Constitution.
That application remains pending before the Supreme Court.
