Kenya Railways MD agrees to pay woman in Sh45m compensation suit

The Kenya Railways Corporation (KRC) managing director has consented to pay Sh10 million quarterly in Sh45 million compensation to a Nakuru businesswoman.

This was after Nakuru High Court Judge Anthony Ombwayo found KR Managing Director Philip Mainga in contempt for failing to pay Monica Macharia following illegal demolition of her business property in 2020.

Mainga was to present himself in court on Friday to show cause why he shouldn’t be sentenced for failing to pay Macharia the money as ordered by the court.

KR boss was found guilty of disobeying a court order and was to be jailed at Nakuru G K Men prison for a period the court deemed fit.

He, however, didn’t appear in court, but his lawyer informed the judge that Mainga had agreed to pay.

The MD requested the court to stay the execution of the decree of the case and notice to show cause schedule be suspended.

“The judgment debtor undertaker to settle the decretal sum together with cost and interests in installments of Sh10 million every quarterly till full payment,” read the consent document filed in court.

Macharia inherited the property after the demise of her husband, Peter Macharia, on October 31, 1998.

The couple had since 1995 possessed the one-acre land, located in Nakuru town, along Nakuru-Kisumu Highway.

She claimed that the land was compensation from the state for her land that was compulsorily acquired by the state to build a public school.

Macharia said, in the land, she had a factory manufacturing bags and other premises rented out to traders.

In March 2020, she was requested to appear in KR offices to shed light on ownership of the land.

However, Kenya Railways went ahead and demolished the properties in October 2020.

She sued Kenya Railways seeking compensation of Sh132 million but was awarded Sh45 million in October 2023.

Since then, the company had failed to pay the stipulated amount with interest.

By February 2025, Kenya Railways was to pay Sh54 million.

Mainga has now promised to pay the first installment on or before April 30, 2025, planning the last installment will be paid on July 30, 2026.

“In default of any one instalment, the balance of the entire amount shall accrue and the summons requiring the managing director to show cause why he should not be committed to civil jail will be reinstated,” read the consent document.