Court halts prosecution of Telkom executives in Sh15 billion case

By Daisy Okiring

The High Court in Nairobi has blocked the prosecution of eight Telkom Kenya managers in a contentious dispute over the surrender of a 90-acre piece of land, valued at Sh15 billion, earmarked for the construction of a sports arena.

The telecommunications company’s CEO, Mugo Kibati, alongside directors Michael Ghossein, Loise Allella, Eddy Njoroge, Jinaro Kibet, Dorcas Kombo, and Sayyid Said, had petitioned the court to prevent a private prosecution initiated by Postel Housing Co-operative Society Ltd and Stephen Magoma.

The applicants argued that despite a ruling by the Environment and Lands Court (ELC) affirming Telkom’s ownership of the land on Ngong Road, they were still facing legal threats over its possession.

Ruled in favour of Telcom executives

Justice Chacha Mwita ruled in favor of the Telkom executives, stating that it would be unjust to subject them to prosecution before a magistrate’s court while a related case remains pending in the High Court. He emphasized that forcing them to take a plea prematurely could jeopardize their legal standing.

“This leaves a factual situation where they may be called upon to take plea anytime, which will change the character of their case as they await the hearing and determination of their appeal,” Justice Mwita stated.

He further warned that proceeding with the prosecution could lead to “real and foreseeable loss or prejudice that cannot in any way be remedied if stay is declined and eventually the appeal succeeds.”

The dispute over the land is not new. In 2021, Telkom sued the Attorney General and the Ministry of Sports, Culture, and Heritage, challenging the government’s attempt to acquire the land for the construction of Posta Sports Grounds. Telkom maintained that the compulsory acquisition was unlawful.

With the High Court’s latest ruling, the Telkom executives have secured temporary relief, though the legal battle over the prime property is far from over.