Court lifts earlier orders on disputed Sh30bn city estate
Suraya Property Limited CEO Pete Muraya (right) with Deputy Prime Minister Musalia Mudavadi (second right) at the launch of the estate. File
The battle for control of Nairobi’s Sh30 billion real estate development took a fresh twist after the High Court in Mombasa suspended temporary orders restraining any transactions on the property.
Lady Justice Jeanne Gacheche set aside the orders Wednesday and temporarily allowed the owners of the housing project Mr Pete Suraya and Sue Muraya, to continue transacting business pending the hearing on August 25.
Nancy Wanja Gatabaki, a director of Muga Developers — the company that owns the Fourways Junction project that comprises 500 high-end residential houses — on Friday obtained court orders restraining other directors, including her husband from any dealings in the property and any bank accounts held by the firm, throwing the home ownership dreams of the buyers in disarray. “I have obtained orders suspending the earlier ruling allowing the directors to full access the property and bank accounts and the contractor to go back on site,” said Cecil Miller, Muga Developers’ advocate.
This promises to be a long-drawn battle pitting the three directors and two commercial banks—Equity and I&M — on one side against Mrs Gatabaki who is claiming about Sh20 billion from the real estate project.
Mr Muraya, one of the directors and the chief executive of Suraya Property Group said that Mrs Gatabaki’s about-turn over the project had been informed by the higher valuations on land as the area opened up following development of the estate.
“This is a joint venture with the Gatabakis but the wife has decided to turn back because the land has appreciated in value,” said Mr Muraya, arguing that a new investor is offering Mrs Gatabaki a higher price for a significant part of the project land that remains unused.
In the suit, Mrs Gatabaki is first taking on her husband, Dr Samuel Gatabaki, over the structure of shareholding in Sagana Developers Ltd, the firm they co-owned and was the initial owner of the 200 acres on which the Sh30 billion estate stands.
This has set the stage for a matrimonial row that is threatening to stall what has been the poster child of Nairobi’s real estate boom that began five years ago and has arguably created the greatest number of Kenya’s growing list of multi-millionaires.
The battle then extends to Muga Developers Limited, a firm they co-own with Suraya Property Limited — a real estate company owned by the Murayas.
Mrs Gatabaki claims in her suit papers that Fourways Junction Estate was to be a joint venture between Suraya Property and the Gatabaki family.
Located some 500 metres from the upmarket Runda Estate, and overlooking the newly opened Northern by-pass, Fourways Junction is strategically placed.
