The legal action comes after a botched deal to clear the debt using a prime piece of land within the upmarket estate. IAF is seeking Sh22 million in the case.
IAF says Thika Greens offered to clear its debt using a 0.05 acre piece of land within the gated community, citing financial challenges for its failure to settle the consultancy fees in cash.
Thika Greens has challenged the demand, claiming that the contract between it and IAF was “void” as the consultancy firm did not have approval from the Capital Markets Authority (CMA) to operate in Kenya.
Financial advisory firm IAF East Africa has sued gated community Thika Greens for defaulting on fees for services it rendered between January and July last year.
The legal action comes after a botched deal to clear the debt using a prime piece of land within the upmarket estate. IAF is seeking Sh22 million in the case.
IAF says Thika Greens offered to clear its debt using a 0.05 acre piece of land within the gated community, citing financial challenges for its failure to settle the consultancy fees in cash.
The gated community however changed tune shortly afterward, arguing that the land earmarked for the deal was not available as records at the survey department showed that it was not within the gated community’s official site map, IAF claims.
Thika Greens has challenged the demand, claiming that the contract between it and IAF was “void” as the consultancy firm did not have approval from the Capital Markets Authority (CMA) to operate in Kenya.
But IAF, which is seeking Sh22 million in the case, holds that its advisory services do not require approval from the CMA.
“Thika Greens benefitted from IAF’s services and Thika Green’s mischievous and misplaced allegation that the contract was unlawful is tantamount to seeking unjust enrichment,” says David Massie, an IAF director.
“As a director of IAF East Africa, I instructed the firm of Ashitiva Advocates to demand and give notice to sue Thika Greens. However, Thika Greens refused or neglected to comply with the demand hence necessitating institution of the suit.”
