The long-running dispute over Sh1.5 billion paid as compensation for land occupied by Ruaraka High School and Drive-In Primary School has taken a fresh turn after the Supreme Court temporarily halted efforts to recover the money.
The interim orders issued on August 18, 2026, have suspended execution of the Court of Appeal judgment delivered on July 3, pending the hearing and determination of an application filed by Huelands Limited.
The Supreme Court has also directed that the matter be mentioned before the Deputy Registrar on August 28 for further directions.
The orders effectively prevent the National Land Commission (NLC) from demanding or taking steps to recover the Sh1.5 billion that was paid as compensation for approximately 13.5 acres occupied by the two public schools.
The court has further barred investigations, arrests, charging or prosecution of Huelands Limited, Afrison Export Import Limited, Whispering Palms Estate Limited and their directors or officers in relation to the payment, pending determination of the application.
The Supreme Court has also temporarily frozen any alteration, cancellation, rectification or amendment of the land register involving LR Nos. 7879/4, 7879/24 and 7879/25. Demolition, eviction, re-entry, transfer, charging or other interference with the disputed property has similarly been prohibited.
The latest development comes after the Court of Appeal upheld a previous decision declaring the Sh1.5 billion compensation payment unlawful.
The dispute centres on land where Ruaraka High School and Drive-In Primary School stand. According to findings that have emerged from the court proceedings, the approximately 13.5-acre portion had been surrendered to the government as part of an approved subdivision process.
The Environment and Land Court had earlier found that the land was already public property and therefore could not subsequently be acquired by the government through compulsory acquisition.
The Court of Appeal agreed with that position, finding that the government could not legally acquire land it already owned. The appellate court consequently held that the compensation payment had no legal foundation.
Following the Court of Appeal ruling, the Ethics and Anti-Corruption Commission (EACC) moved to recover the Sh1.5 billion. The commission also indicated that it would pursue possible criminal accountability against individuals implicated in the controversial transaction.
The EACC had argued that the payment represented a loss of public funds because the land had already been surrendered to the government. The commission's position was strengthened by the Court of Appeal decision, which upheld the earlier findings concerning the status of the property.
However, Huelands and Afrison have challenged the findings before the Supreme Court. The companies maintain that the disputed land remained private property and argue that the compensation was part of a legitimate acquisition process.
They contend that the Sh1.5 billion was the first instalment of a larger compensation award amounting to approximately Sh3.2 billion. They have also argued that Whispering Palms Estate Limited was properly appointed to receive the initial payment on their behalf.
The applicants are seeking orders that would overturn the findings against them and have further asked the court to direct payment of an outstanding balance of about Sh1.769 billion.
The case has attracted significant public attention because of the amount of money involved and the fact that the disputed property is occupied by public schools.
The controversy has also been examined by Parliament in the past. A Senate inquiry into the Ruaraka land dispute raised questions about the acquisition process and noted that the Sh1.5 billion payment had been drawn from a Ministry of Education budget item relating to legal dues.
For now, the Supreme Court's interim orders mean that the recovery process cannot proceed while the legal challenge remains pending.
The orders do not finally determine whether the Sh1.5 billion must be returned. Instead, they preserve the existing position until the court considers the application and determines the next stage of the case.
The upcoming proceedings will therefore be closely watched as the Supreme Court considers whether the challenge meets the legal threshold for intervention and whether the earlier findings concerning the disputed Ruaraka land should stand.
Until then, the Sh1.5 billion recovery effort remains frozen, leaving the controversial land compensation dispute firmly before the country's highest court.