Family Bank Towers, headquarters of the lender, in Nairobi. PHOTO | SALATON NJAU
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Family Bank wants the High Court to stop oil marketer KenolKobil from kicking it out of a prime piece of land in Nairobi’s Kilimani estate.
The bank says it initially rented the space from KenolKobil, which is also a tenant on the land, but the deal became void when an investor bought the plot in 2010 and revoked its lease.
The lender says it then entered into a lease with the new landlord, Alfaways, to whom it has been paying rent since.
Family Bank has asked the High Court to stop oil marketer KenolKobil from kicking it out of a prime piece of land in Nairobi’s Kilimani estate, arguing that it has a valid lease agreement with the property’s owner.
The bank says it initially rented the space from KenolKobil, which is also a tenant on the land, but the deal became void when an investor bought the plot in 2010 and revoked its lease.
Family Bank says it then entered into a lease with the new landlord, Alfaways, to whom it has been paying rent since.
Family Bank holds that KenolKobil wants to evict it from the premises despite being aware of the new arrangement between the lender and Alfaways, which acquired the land from Posta Investment Co-operative Society.
The lender says eviction will be an embarrassment to its over 1.6 million clients. It fears that ATMs at its Kilimani branch will also be exposed to vandalism if KenolKobil is not stopped.
KenolKobil, in its response however, says that it was allowed to collect rent from Family Bank in a separate suit it filed against Alfaways until sale of the plot is completed.
The oil marketer adds that it terminated Family Bank’s lease in November 2010, and that the terms of the deal provided that the lender would vacate the premises and remove all banking equipment from the space.
“The licence between Family Bank and KenolKobil was not consented to by Alfaways. KenolKobil’s threatened illegal actions would cause great loss and damage to Family Bank and its ATMs will be exposed to thuggery and theft,” the bank says.
The lender insists that any rights KenolKobil had over the property became null and void when Alfaways bought the land from Posta.
The bank adds that KenolKobil has not shown any court order to prove the claim that the deal was indeed struck between the oil marketer and Alfaways.
“In the said settlement, Alfaways confirmed that KenolKobil is liable to pay rent for the property from July 2010 up to the date of completion of the sale which is a confirmation that KenolKobil was at all material times a lawful lessee of the property,” KenolKobil maintains.
The matter was to come up before Justice Mary Gitumbi on Wednesday but she adjourned it after the parties said they were not ready to proceed with the case.
She directed the two firms to seek a new hearing date at the registry.
The lender’s lease with Alfaways was to last for six years from 2010.
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