Court extends order halting construction of NSSF tower
The Hazina Trade Centre which houses Nakumatt Lifestyle. PHOTO | FILE
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Justice Lucy Gacheru on Wednesday extended the order stopping the construction by a week to allow Nakumatt Holdings to respond to NSSF’s application seeking to lift the injunction.
Nakumatt wants construction that started in December stopped until after 2023, when its lease expires, on grounds that it is disrupting business.
The National Social Security Fund (NSSF) will have to wait another seven days to know if it can resume construction of the Sh6.7 billion Hazina Trade Centre that hosts the Nakumatt Lifestyle branch.
This is after the High Court deferred ruling on the extension of an order obtained by Nakumatt Holdings against the development.
Justice Lucy Gacheru on Wednesday extended the order stopping the construction by a week to allow the supermarket owners to respond to NSSF’s application seeking to lift the injunction.
Nakumatt Supermarkets obtained temporary orders against NSSF stopping ongoing construction of the Hazina Trade Centre claiming Sh1.6 billion compensation for lost business.
The tower, which at 39 storeys is expected to be Nairobi’s tallest skyscraper, is undergoing construction to add onto its current eight floors. NSSF owns the building.
The judge said she will deliver her ruling on whether the construction should continue pending determination of a case filed by Nakumatt, after hearing NSSF’s application to lift the temporary injunction interparty.
The judge directed Nakumatt Holdings to file its response in three days.
NSSF lawyers opposed extension of the order on Monday when the case came up for mention arguing that the stalled project will cause it immense loss. NSSF and China Jiang Xi International, the contractor, are listed as first and second defendants in the case.
Nakumatt is seeking Sh1.6 billion compensation for lost profit, arguing that the number of shoppers visiting the branch has dropped by 37 per cent causing it huge losses and damages.
The retailer wants the construction that started in December stopped until after 2023, when its lease expires, on grounds that it is disrupting business.
Nakumatt says NSSF cannot undertake the project in its current form, arguing that the premise is a busy trading and shopping centre with hundreds of shoppers frequenting its supermarket business that operates a 24-hour basis. NSSF, however, in its defense argued that the agreement with Nakumatt allowed for construction of extra floors with no liability to pay compensation for loss of profit resulting from the same.
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