Companies

Kuguru wins reprieve in land row with city residents

KUGURU

Kuguru Food Complex founder Peter Kuguru at his office in Industrial Area, Nairobi. PHOTO | SALATON NJAU

Tycoon Peter Kuguru has obtained court orders barring the National Land Commission (NLC) from revoking his ownership documents of a prime property that is also being claimed by residents of South C’s Rangers Court.

Mr Kuguru, through his company Kuguru Food Complex Limited, claims in suit papers that he hived off 0.3 acres from an original parcel totalling 14.8 acres and sold the balance to Rangers Court residents.

The businessman, who owns Softa Bottling Company, says he had already built residential units on the contested piece of land before the NLC revoked his title deed.

Rangers Court residents, however, insist the physical plans the tycoon showed them when purchasing their plots of land indicated that the contested property would be reserved for use as a playground.

“This honourable court issues a conservatory order in the nature of an injunction to restrain the NLC and chief land registrar…from reviewing, investigating or purporting to revoke title…registered in the name of Kuguru Food Complex Limited,” reads Justice Edward Muriithi’s order.

Mr Kuguru, who recently put his beverage business up for sale, initially owned 14.8 acres but subdivided the prime land into 257 plots and, beginning 2001, sold most of them to residents of the South C estate.

READ: Kuguru reveals why he threw in the towel on Softa

In his suit papers, the businessman adds that he surrendered one plot of land to the government during the subdivision process.

Mr Kuguru claims he obtained approvals from National Environment Management Authority (Nema), the National Construction Authority and City Hall before borrowing an undisclosed amount of money to put up a residential flats.

“Kuguru Food Complex engaged building professionals as required by the law at very exorbitant costs and among the developments approved on the property included a borehole,” the businessman said in court papers.

“The residents who purchased plots from Kuguru wrote a protest letter to the NLC falsely misrepresenting that Kuguru was building on land set aside as a playground for their children.”

Rangers Court residents, who want to join the suit as interested parties, claim that Kuguru Food Complex has since 2002 tried to illegally acquire documents to switch the contested land’s registered use and construct.

They add that in 2003, Mr Kuguru attempted to change the land’s registered use to build a church.

The NLC and chief land registrar in their responses hold that the businessman illegally acquired a title deed for the prime property, and that stopping them from investigating these documents will absolve the company of any wrongdoing.

Mr Justice Muriithi has ordered the parties to appear before him on December 8 for hearing.

The suit has offered an insight into the direction Kuguru Food Complex, which owned the collapsed Softa beverages, has opted to take in its reorganisation strategy as the firm ventures into real estate.

Two weeks ago, Mr Kuguru announced that his Softa Bottling Company is exiting the market due to financial difficulties occasioned by failure to secure a joint venture partner.

The bottler’s products, including Softa soda, predominantly found acceptance among low-income consumers during its two-decade operation. 

His strained business empire has diversified into other consumer goods such as sanitary pads and diapers to stay afloat after hitting financial headwinds.