Tatu City has lost its bid to block Home Bridge from constructing 652 apartments in a heated row over building approvals, and whose outcome could affect development policy in special or controlled areas.
Court of Appeal judges Stephen Gatembu Kairu, Francis Tuiyott and Pauline Nyamweya ruled that Home Bridge stands to suffer more loss than Tatu City if construction of the apartments is stopped, even temporarily pending determination of the case.
Tatu City was challenging a High Court decision which allowed Home Bridge to proceed with construction.
Home Bridge is building the apartments, dubbed Lifestyle Heights phase II, on a 20-acre piece of land.
The property developer built and sold all units in Lifestyle Heights phase I, which sits on a 10-acre land.
The Court of Appeal has held that Home Bridge stands exposed, as the developer borrowed over Sh2.4 billion for the project, which will attract extra costs if construction is stopped, and plunging the project into unviable status.
The judges added that Tatu City had approved an identical project, Lifestyle Heights phase I, hence could not cry foul in the second development.
“A number of uncontested factors have persuaded us that the appeal by Tatu City will not be rendered nugatory, key being that it had previously approved an identical construction by Home Bridge; no evidence of the nature of irreversible damage that will be caused by the subject development was provided by Tatu City; there are third parties who will be affected by an order staying the developments,” the appellate judges ruled.
Tatu City and Home Bridge fell out during construction of phase II, when the former demanded Sh47 million to issue building approvals for the project.
Home Bridge opted to get the approvals from the Lands ministry and Kiambu County, and the cost dropped to Sh7 million.
Tatu City sued Home Bridge in 2023, arguing that it is gazetted as a special economic zone hence has first priority in issuing approvals.
The High Court initially issued orders stopping construction of Lifestyle Heights phase II.
During hearing, Home Bridge told Justice Kemei that it only went to the Lands ministry and Kiambu County after Tatu City demanded nearly seven times the fees charged by the government institutions for approvals.