Court Orders Sh5 Billion Kanduyi Housing Project Halted, Gives Government 45 Days

The government has been ordered to restore land at Kanduyi Airstrip in Bungoma after a court invalidated a multibillion-shilling affordable housing development. The ruling has dealt a major blow to plans to build 2,034 housing units under the Kanduyi Airstrip Smart City project.

In a judgment delivered on October 8, 2026, the Environment and Land Court in Bungoma found the project unconstitutional and unlawful. Justice Kossy Bor cited failures involving public participation, environmental protection and procedures governing the use of public land.

The development had been allocated a construction contract valued at approximately Ksh5.02 billion. However, three petitioners challenged the decision to convert land reserved for aviation into a residential development.

Why the Court Cancelled the Project

The petitioners argued that the disputed land should remain available for aviation purposes, including the possible expansion of Kanduyi Airstrip. They also maintained that any change in land use had to follow the law and involve meaningful public participation.

In its determination, the court found that the respondents had not demonstrated compliance with the legal requirements for converting the aviation reserve into housing land. The court also noted that the construction contract had been awarded before a public participation meeting held on January 14, 2026.

Concerns were also raised over compliance with environmental and physical planning laws. These failures formed part of the basis for declaring the project unlawful.

Government Ordered to Restore the Land

The court directed the respondents to restore the disputed land to its original condition within 45 days, with the cost to be met by the responsible parties. It also ordered an environmental and land-use audit and directed the respondents to pay the petitioners' legal costs.

The decision leaves the planned housing development facing uncertainty, with the government required to comply with the court's orders. The ruling also highlights the legal requirements that must be met before public land can be converted for a different purpose.

Ruling Comes After Court Upholds Housing Law

The Bungoma judgment follows a separate Court of Appeal decision delivered on September 25, 2026, which upheld the Affordable Housing Act, 2024. A five-judge bench dismissed appeals challenging the law, allowing the legal framework supporting the national housing programme and its 1.5 per cent housing levy to remain in force.

The two rulings address different legal questions: one concerns the national law underpinning affordable housing, while the other concerns the legality of a specific project on disputed public land. The Kanduyi decision therefore underscores that a valid housing programme does not remove the obligation to comply with land-use, environmental and public participation requirements for individual developments.