Firm restrained from dealing with prime city plot

A firm allegedly allocated a prime city plot through fraudulent means and awarded Sh80 million in a suit against Inter-Continental Hotel over the property has been blocked from prosecuting two cases pending before Milimani Commercial Court.

Justice Msaga Mbogholi allowed an application by Kenya Hotels Properties Ltd (KHPL), which owns the five-star hotel, to stay proceedings of Willsesden Investments Ltd against Intercontinental Hotel and City Council of Nairobi.

Willsesden was restrained from dealing with the controversial plot adjacent to Nyayo House or taking further steps in prosecuting the suits at the Commercial and Tax Division at Milimani until further orders from the court.

City Council, from whom the property was allegedly “grabbed” and allocated to private individuals, has been enjoined in the suit.

Through Allen Gichuhi, Inter-Continental argued that the land was irregularly acquired from a public street.

Kenya Anti Corruption Commission (KACC) who last week moved to court seeking to recover the land along Kaunda Street in Nairobi claims the plot was fraudulently allocated to private individuals.

The anti-graft watchdog says the parcel of land was hived off Kaunda Street in 1967 as a road reserve to link Uhuru Highway and the Central Business District (CBD).

The plot, now used as a parking zone, was allegedly allocated to a non-existent entity but the grant was subsequently issued in the name of Willsesden Ltd.

KACC claims the allocation was in breach of many statutes including the Government Lands Act, Local Government Act and the Physical Planning Act.

The land was illegally and fraudulently allocated to “non- entities”, according to KACC investigator Yuvinalis Angima. Inter-Continental claims in the suit papers that Willsesden lost possession of the land in September 2004 when the City Council reclaimed the property.

In a sworn statement, a director of Intercontinental, Marianne Ndegwa Jordan, states that Willsesden cannot sue the hotel or the city council for trespass on a public utility.

Willsesden has sued the council claiming Sh41 million in damages for trespass. But in defence the council says the excision of a road reserve cannot be gazetted.

Further, the council maintains that no permission could be granted to develop the land on account of its size.

“Public rights take precedence over private rights during the allocation and granting of the title,” says the hotel director.

In its suit, KACC wants the court to restrain KHPL from paying Willsesden Sh80 million after Willsesden successfully argued that Intercontinental had been using the property as its parking lot.

Sued together with Willsesden are directors Ben Muli, Jatin Patel, Hitesh Rathhood, Martha Kimwele and former Lands Commissioner Wilson Gachanja.

Mr Gachanja is accused of allocating the land to a private company known as Centre Park Ltd.

Investigations by the anti-graft agency have also revealed that the firm is non-existent, from records at the Registrar of Companies.

It is in the new grant that the plot has been registered in Willsesden’s name.

Subsequent searches at the registrar have, according to KACC, revealed similar names; Willesden Ltd, Willesden Holdings Ltd and Willes Den Investments Ltd.

“It is clear that the suit property was allocated to a phoney company,” says KACC. The new firm allegedly wanted to establish a “multi-storey car park” but the plan was never approved by the Director of City Physical Planning.

In 2000, Willsesden filed a case accusing Kenya Hotel of trespass and was awarded damages.

KACC wants the money deposited in an interest-earning account until the case is heard and concluded.

The watchdog further wants the individuals barred from selling the plot pending determination of the case.

KACC says the city council had earlier asked the Lands Commissioner to cancel the title deed, saying it was irregularly.