Total Kenya gets reprieve in Sh150m Eastleigh land case

Oil marketer Total Kenya has won a reprieve after the court stopped a Sh150 million demand by Muvir Holdings, a company which won a legal battle over a parcel of land in Nairobi’s Eastleigh area on which a petrol station had been constructed.

The controversial land had previously been leased to Chevron Kenya (formerly Caltex Oil Kenya), which had built a petrol station on it. It was later bought by Total Kenya as part of its acquisition of Caltex operations in the country.

Justice David Onyancha in December last year found that the defunct City Council of Nairobi, which was replaced by the Nairobi City County government, had acted lawfully in leasing the property to Muvir Holdings in 2007.

Justice Lucy Njuguna has however certified the application by Total Kenya urgent and temporarily stopped Muvir Holdings from demanding Sh154,503,223 pending the hearing of an application for stay, which will be heard on March 9.

Chevron Kenya (formerly Caltex Oil Kenya), Total Marketing Kenya and Total Kenya are supposed to pay Muvir Holdings Sh154,503,223 being special and general damages for use of its land.

Total Kenya however wants Muvir Holdings stopped from demanding the amount until its application at the appellate court is heard and determined.

City Council of Nairobi had granted Chevron Kenya a lease over the property for 33 years from September 27, 1955 subject to certain terms and conditions which it did not however meet.