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Real estate firm loses Sh20m Kiambu farmer award appeal

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Homes built by the developer on its adjacent property. PHOTO | DIANA NGILA | NMG

A real estate company in Nairobi has lost its bid to stop enforcement of an order that required it to pay a Kiambu coffee farmer Sh20.9 million for destroying his water pipes during construction of a road.

Home Afrika Communities Limited wanted the High Court to set aside the award that was made by arbitrator Justus Muthithya in favour of Josphat Njoroge Mwangi.

Through its general manager, Dickson Wanjohi, the company, well known as Home Afrika, challenged the arbitration award dated February 27 on grounds that the payment was unwarranted.

The dispute started in 2012 when Home Afrika started construction of Migaa Golf Estate, on a parcel of land measuring about 774 acres in Kiambu County.

The farmer was the owner of a neighbouring land parcel known as Ngurunga Farm, measuring about 220 acres. The parties shared a common boundary. While Home Afrika developed a golf course and a controlled housing park, Mr Njoroge was primarily a coffee farmer.

On January 26, 2012, the parties entered into an agreement for an easement in which the farmer granted Home Afrika a right of way and access over his land. Later, a Deed of Easement was registered against the Mr Njoroge’s title at the land registry.

But a dispute arose between the parties regarding damage done to Mr Njoroge’s property including his trees, crops and rupturing of water pipes.

Mr Njoroge contended that during construction on the road, the contractor damaged his irrigation system on Ngurunga farm, leading to spilling of water. This caused him substantial loss and the dispute was referred to an arbitrator who was picked by the Chartered Institute of Arbitrators.