Telkom Kenya has started a court battle with the government over a Sh15 billion prime property in Nairobi.
This has further escalated the dispute that could affect the construction of a modern sports complex on Ngong Road.
This is after the telco, which is owned partly by the government, moved to court.
The telco accused the government of failing to compensate it for acquiring a 60-acre parcel of land estimated to be worth Sh15 billion.
In court documents, Telkom has accused the Ministry of Sports and the National Land Commission (NLC) of failing to compensate it.
This is after showing the intention of compulsorily acquiring the land, according to Business Daily.
The court battle could derail the construction of the modern sports complex that was nearing completion.
The Sh600 million sports complex is expected to have four soccer fields, one rugby field, as well a hockey and athletics running field.
The construction of the complex began in August 2020.
The process for the acquisition of land started in March 2017 when the government showed interest in acquiring the land for public use.
At the time, there was another dispute over the land.
This is as former employees of Kenya Posts and Telecommunications Corporations (KPTC) under Postel Housing Co-operative, fought with Telkom over a portion of the land.
Other parties involved in the arbitration were Aftraco Ltd and Exclusives Estates Ltd.
But NLC later published a Gazette Notice in 2017 of the government’s intention to compulsorily acquire the land.
It was to be for the establishment of informal Jua kali operations.
The matter went quiet until 2019 when Telkom asked the government, through the Ministry of Public Service, to withdraw the notice of acquisition because there was no progress.
In December, the court restrained the contractor, Dallo Holdings, to stop any further construction, pending the hearing of the case on January 24.
But in the latest application, Telkom says the contractor has proceeded with construction of the sports facility after erecting a site office and mobilized excavation machinery and other equipment.