The High Court has fined Mzee Daniel Arap Moi and Rai Plywood (K) Limited a Sh1 billion fine after he was found guilty of land grabbing.
The amount is payable to the family of the Late Noah Kipngeny Chelugui whose 53-acre piece of land was illegally taken from them.
The court established that the former President used lands officials in his government to make the illegal transfer of the property in 1983.
After 24 years, Mzee Moi sold the land to a firm owned by the Jaswant Rai family.
Mzee Moi failed to prove how he acquired the land
High Court judge Antony Ombwayo was not satisfied that Mzee Moi bought the land from the Late Chelugui as there was no proof from documents presented in court.
"There is no iota of evidence as to how the former President was registered as the proprietor of the suit land, which was part of property that belonged to Noah Kipngeny Chelugui.
"The state counsel stated that these were orders from above by the first defendant, who was the President.
"The court finds that the statement borders on illegality, impunity and procedural impropriety. This court cannot protect property that was acquired through impropriety," the judge explained.