Some of the houses under the Fourways Junction project off Kiambu Road in Nairobi. A judge on Monday summoned the directors of Muga Developers Ltd and Suraya Property Group to appear in court this morning in an attempt to resolve a dispute over the Sh30 billion housing project. Photo/FILE
A judge on Monday summoned the directors of Muga Developers Ltd and Suraya Property Group to appear in court this morning in an attempt to resolve a dispute over the Sh30 billion Fourways Junction housing project.
Mr Justice Mohammed Warsame issued the directive after it emerged that negotiations by the warring parties to have the dispute settled out of court had failed.
Lawyer Cecil Miller, representing Suraya Properties directors Mr Peter and Sue Muraya informed Mr Justice Warsame that talks to resolve the dispute “have hit a brick wall” and we would prefer that the matter be heard and determined.
The directors to appear before Mr Justice Warsame include Mrs Nancy Wanja Gatabaki and her husband Dr Samuel Gatabaki, as well as Peter Muraya and Sue Muraya, representing Muga and Suraya Properties Groups respectively.
Mrs Gatabaki is a director of Muga Developers – the company that co-owns the Fourways Junction project.
Yesterday, Mr Miller told the court that the orders barring any transaction of the housing project had dealt a great blow to his clients citing bank accounts that had been frozen, forcing construction work on the site to stop.
He said the directors cannot access funds in either Equity Bank or I&M and as a result, the company was losing an estimated Sh1 million daily. The two lenders advanced Sh2.1 billion towards the housing project.
Mr Miller also sought protective measures from the court, saying Mrs Gatabaki should be compelled to deposit Sh20 million to cover the court costs and a further Sh200 million for damages.
Mrs Gatabaki through her advocate Ashford Muriuki Mugukwu claims that Mr Muraya and his wife fraudulently transferred 200 acres to Muga developers and used the property as collateral for two loans worth Sh2.1 billion from the two banking institutions without her knowledge.
Allegations that the two other directors Mr and Mrs Muraya disputed, saying she participated in the entire process.
Mr Miller accused Mrs Gatabaki of being untruthful while obtaining initial orders to stall the project, saying had she disclosed the facts, the court would have “probably ruled otherwise.”
The project-Fourways Junction-is strategically located some 500 metres from the leafy Runda Estate in South West Nairobi and overlooking the newly opened Northern by-pass.
Upon completion, it is expected to hold a mix of cluster houses apartments, office blocks, a shopping mall, a three-star hotel, and fully fledged country club.
