Real estate developer Acorn Properties has been barred from selling a property in Nairobi to recover a debt of Sh134 million. FILE PHOTO | SHUTTERSTOCK
Real estate developer Acorn Properties has been barred from selling a property in Nairobi to recover a debt of Sh134 million arising from a development deal with an investment firm.
Justice Alfred Mabeya blocked Acorn from attaching and selling Isaac Gathungu Wanjohi’s land unless it sets aside a directive granted by another judge in 2021 allowing him and co-director Isabella Nyaguthii to settle the debt in instalments.
The two are directors of Gumba Investments Ltd, which contracted the real estate firm in 2012 to develop a rental unit for them in Nairobi West.
“My view is that, if the decree holder (Acorn Properties Ltd) wants to execute the decree, it should first vary that order or have the same set aside first. There cannot be execution unless there is default on the conditions set by the Court on the stay,” the judge said.
The real estate developer moved to court seeking to be allowed to value and sub-divide a property belonging to Mr Wanjohi and also block him from interfering with the property, pending payment of the debt.
Evidence tabled in court says a dispute arose between the parties and the matter was referred to an arbitrator who directed Gumba Investments to pay the money plus interest of 16 percent per annum in 2016.
The matter was later referred to the High Court, which adopted the arbitrator’s award in October 2019, allowing the property developer to enforce the award.
Attempts by the duo and their company to set aside the award were dismissed by the High Court and in a subsequent filing, they were directed to settle the money in installments.
Mr Wanjohi informed the court that Justice Francis Tuiyott (now Court of Appeal judge) had in 2021 directed them to pay Sh10.5 million within 30 days and thereafter a monthly instalment of Sh4 million every 5th day of each succeeding month.
The developer has accused Gumba and its directors of not adhering to the instalments as ordered by the court, hence the need to sell the property as the amount was still rising.
