Cape Holdings, the owner of the 14 Riverside complex that houses the DusitD2 hotel, has suffered another setback after the High Court ordered it to vacate a disputed Spring Valley property linked to the contested development.
The ruling followed the court’s decision to overturn earlier orders that had granted Cape Holdings Ltd access to the property, which is at the centre of a long-running legal dispute with Synergy Industrial Credit Ltd.
Synergy, the creditor in the case, argued that the order allowing Cape Holdings to occupy the property contradicted a 2024 ruling that expressly barred the company and its agents from dealing with the asset.
“I agree with the arguments by the applicant/decree holder (Synergy Industrial Credit) that the orders of December 12, 2025, are in direct contravention of the court’s ruling of November 19, 2024,” the judge said.
The court ordered Cape Holdings and Jaysukhlal Bhaichand Sanghrajka to vacate the property within 24 hours.
“Failure to which the applicant shall be at liberty to seek the assistance of the Inspector General of Police through the OCS, Gigiri Police Station, to ensure compliance,” the court said.
Cape Holdings and Synergy Industrial Credit have been embroiled in a legal battle for more than a decade following a failed commercial transaction.
Synergy says it paid Cape Holdings Sh750 million to acquire part of the 14 Riverside complex, but the deal collapsed and was referred to arbitration. In 2015, the arbitrator ordered Cape Holdings to pay Sh1.6 billion plus interest, a figure that has since grown to more than Sh5 billion.
Synergy has sought to recover the debt through the sale of the 14 Riverside complex and other properties owned by Cape Holdings, including the Spring Valley property, which it claims was developed using proceeds from the failed transaction.
I&M Bank has also laid claim to the 14 Riverside property, arguing that it was charged to the lender as security for a loan.
In its ruling, the court noted that the latest application was filed with full knowledge of the November 2024 decision and described it as an attempt to mislead the court into issuing conflicting orders. The move was termed an abuse of the court process.
In April, the High Court temporarily halted the auction of the 14 Riverside complex, where the DusitD2 hotel is located. The sale, scheduled for April 11, 2025, was to be conducted by Phillips International Auctioneers to recover a Sh9 billion debt owed to Synergy Industrial Credit.
The court stopped the auction after Cape Holdings argued that the forced sale would proceed without a fresh valuation of the property. The parties were directed to appear in court on May 9 for a further hearing.
In a newspaper notice published on March 20, the auctioneer had invited bids in a third attempt to sell the property, which has been tied up in court disputes for more than a decade.
“All interested bidders are requested to view the property and verify the details independently to their satisfaction, as these are not warranted by the auctioneer or any other party,” the notice said.
Cape Holdings challenged the notice in court, arguing that it did not meet the legal requirements for a sale.
