Court Orders Kenya Railways, State to Pay KSh77 Million Over Tilapia Beach Demolition

A court has ordered Kenya Railways and two government entities to pay KSh76.87 million over a disputed property demolition.

More than four years after winning compensation, Amina Achieng’ Ochieng and Tilapia Beach Resort Limited are finally closer to payment.

The Environment and Land Court in Kisumu has now ordered government accounting officers to settle the outstanding judgement.

Justice Edward Wabwoto issued the order on August 21, 2026, rejecting several explanations advanced by Kenya Railways Corporation.

The Corporation had blamed budgetary constraints, a pending appeal and uncertainty over its share of liability.

The judge dismissed all three arguments, saying none lawfully justified continued non-payment.

The order covers KSh 76,873,366 awarded in the original case, plus KSh 963,543 awarded in the original case, plus KSh963,543 in taxed costs.

Interest will continue running at court rates until the entire judgement debt is settled.

The respondents must also pay KSh100,000 in costs for the latest judicial review proceedings.

Demolition Dispute

The dispute traces back to Kisumu Environment and Land Court Case Number 40 of 2019.

Achieng’ and Tilapia Beach Resort sued the Kenya Ports Authority, Kenya Railways Corporation and the Kisumu County Government.

They also sued the Attorney General over the destruction of their property.

On February 24, 2022, the court found the defendants jointly and severally liable for the applicants’ losses.

It consequently awarded them a combined KSh76,873,366 in compensation.

The award attracted interest from the date the original suit was filed until payment.

The applicants’ costs were later taxed at KSh963,543 on September 28, 2023.

They also obtained a Certificate of Order against the Government, which was issued on October 3, 2022.

That certificate was subsequently served upon the relevant judgement debtors as required by law.

Despite those steps, however, the judgement remained unpaid for years.

The applicants eventually returned to court seeking an order of mandamus.

They argued that the respondents had failed to perform their statutory duty.

The court agreed that the circumstances justified intervention through judicial review.

Stay Collapsed

Kenya Railways had, meanwhile, challenged part of the original judgement before the Court of Appeal.

It filed Civil Appeal Number E011 of 2022 at the Kisumu Court of Appeal.

The Corporation also obtained a conditional stay of execution on March 28, 2023.

But that protection came with a crucial condition that Kenya Railways failed to satisfy.

The Corporation was required to deposit half the decretal amount within 45 days.

The money was to be placed in a joint interest-earning account held by the parties’ advocates.

Although the account was opened at KCB Bank’s Eldoret branch, no deposit was made.

The stay consequently lapsed automatically under the terms imposed by the trial court.

Kenya Railways neither sought an extension nor challenged those conditions through review.

It also did not obtain another stay from the Court of Appeal.

Justice Wabwoto therefore found that the pending appeal offered Kenya Railways no protection.

An appeal does not automatically suspend execution unless a court expressly grants such protection.

With the stay gone, the original judgement remained enforceable against the judgement debtors.

Budget Excuse Fails

Kenya Railways then turned to its financial circumstances to explain the prolonged delay.

The Corporation told the court that it depended on government funding for its operations.

It said the judgement debt had been presented for inclusion in a new financial year’s budget.

The Corporation maintained that approval and release of funds remained outside its control.

The judge was unconvinced, particularly given the passage of more than four years.

Justice Wabwoto held that budgetary constraints cannot justify indefinitely withholding money awarded through a valid court judgement.

Public bodies, he said, must make appropriate budgetary provisions for judgements entered against them.

The court found Kenya Railways had provided little evidence showing serious efforts towards settlement.

It had not produced budget proposals demonstrating provision for the outstanding judgement.

Nor had it produced correspondence with the National Treasury concerning the debt.

There was equally no evidence of any partial provision towards settling the judgement.

The court therefore found that merely presenting the claim for future budgetary consideration was inadequate.

That finding carries significance beyond the dispute involving Kenya Railways.

It reinforces the principle that government bureaucracy cannot become a permanent barrier against court orders.

Joint Liability

Kenya Railways also argued that the court should determine the amount attributable specifically to it.

The Corporation pointed out that the original judgement had imposed joint and several liability.

It said it had not been told the precise portion it was expected to settle.

Again, the judge rejected the argument.

Where liability is joint and several, a decree holder may recover the entire amount.

The judgement debtor’s internal arrangements cannot dictate how the successful litigant recovers.

Any disagreement over contribution therefore remains a matter between the judgement debtors.

The applicants were not required to wait while government entities determined their respective shares.

Justice Wabwoto also declined Kenya Railways’ request to apportion the debt.

He held that judicial review proceedings could not be used to rewrite the original decree.

Kenya Railways can instead pursue contribution from its co-debtors through appropriate legal proceedings.

The court consequently found none of the Corporation’s explanations sufficient to excuse continued non-payment.

It noted that the applicants had not received even a single shilling more than four years after judgement.

The judge stressed that courts do not issue orders merely for them to remain unimplemented.

He linked enforcement of court orders directly to the rule of law and constitutional governance.

The applicants had calculated their outstanding claim at KSh142,410,536.33 as of October 14, 2025.

That figure included the principal amount and interest accumulated by that date.

However, the court did not cap the amount at KSh142.4 million.

Instead, interest continues accruing according to the original decree until payment.

The final amount will therefore depend on when the respondents eventually settle the debt.

The court’s final order was unequivocal.

The accounting officers of Kenya Railways, the national government and Kisumu County must settle the decree.

They must pay KSh76,873,366, plus KSh963,543 in taxed costs and accrued interest.

They must additionally meet KSh100,000 awarded as costs of the judicial review application.

For Achieng’ and Tilapia Beach Resort, the ruling provides another significant victory.

Their original compensation award has survived an appeal, prolonged delay and repeated administrative explanations.

READ ALSO: Mombasa County Ordered to Pay KSh96 Million After Unlawful Demolition of Nyali Mansion

The latest judgement now places a direct legal obligation upon government accounting officers.

It also delivers a pointed message to public institutions resisting court-awarded financial obligations.

A valid judgement cannot simply be buried inside successive budget cycles and bureaucratic processes.

For the applicants, the issue is ultimately straightforward after years of legal battles.

They won their case, obtained their decree and completed the required enforcement procedures.

The court has now ordered the government entities to pay what they already owe.

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