Some of the houses at the Fourways Junction off Kimabu Road, the subject of a fresh property tussle between the owners. Photo/FILE
What you need to know:
The former legislator has sued the owners of the property, Muga Developers, for breach of a contract that involved the transfer of 16 residential houses for the 20 acres he offered to Fourways Junction.
The former legislator claims that the agreement between him and Muga Developers lapsed in 2010, and is seeking court to permanently restrain Muga Developers from developing the land or selling the units pending the determination of his case.
Caught in the cross-fire are hundreds of home buyers who have so far paid Muga Developers through off-plan home purchases and whose fate now depends on how fast the courts move in hearing the dispute.
One of Nairobi’s priciest real estate developments, Fourways Junction, has been a hit by a fresh row after former Githunguri MP Njehu Gatabaki returned to court seeking to stop construction and sale of the property.
The former legislator has sued the owners of the property, Muga Developers, for breach of a contract that involved the transfer of 16 residential houses for the 20 acres he offered to Fourways Junction.
Muga Developers are associated with his brother Samuel Gatabaki and Suraya Properties Group, a real estate company owned by Sue and Peter Muraya.
Two years ago the real estate property made up of 500 top-of-the-range residential houses was nearly brought to a halt following an ownership battle pitting Dr Samuel Gatabaki against his wife Nancy Wanja Gatabaki. Ms Gatabaki was later awarded Sh725 million in an out-of-court settlement.
The Suraya Group and the Gatabaki’s are partners in Fourways Junction, which is strategically placed at about 500 metres from the upmarket Runda Estate, and overlooking the newly opened Northern By-pass.
“Unless the said construction is stopped by the court, the pending application will be rendered nugatory (insignificant), and the applicant shall suffer irreparable loss and damage,” says Mr Gatabaki, in the latest application filed on June 10.
The former legislator claims that the agreement between him and Muga Developers lapsed in 2010, and is seeking court to permanently restrain Muga Developers from developing the land or selling the units pending the determination of his case.
The development has been partly completed and occupied.
Muga Developers in replying court documents say some of the residential units houses have been rented to UN staff.
The developer, through Mr Muraya, has termed Mr Gatabaki’s claims as malicious and aimed at derailing the construction and embarrassing the firm.
Mr Muraya, who was responding on behalf of Nancy Gatabaki and Dr Gatabaki says the dispute was settled through shareholder consent.
In the initial agreement, Suraya was to inject funds in the housing project while the Gatabakis were to contribute the land for a 50:50 stake.
The former Githunguri MP has been locked in a matrimonial suit with his wife Rachel Mwihaki, with the 16 residential houses being at the centre of the battle. Ms Mwihaki had moved to court seeking to restrain him from selling the 20-acre piece of land to Muga Developers.
On completion, Fourways Junction will hold a mix of cluster houses, apartments, office blocks, a shopping mall, a three-star hotel and fully fledged country club.
Caught in the cross-fire are hundreds of home buyers who have so far paid Muga Developers through off-plan home purchases and whose fate now depends on how fast the courts move in hearing the dispute.
Muga Developers became the second multi-billion shilling real estate project to be rocked by shareholder wrangles, after similar woes hit the Sh200 billion Tatu City, delaying its takeoff.
In the Tatu City project, two shareholders, Stephen Mwagiru and his mother Rosemary Wanja, have demanded dissolution of the company, accusing other shareholders —including Moscow-based Investment Bank Renaissance Capital — of sidelining them in decision-making.
Muga Developers was formed between May 2007 and February 2009, when Mr Muraya, the managing director at Suraya Properties, approached the Gatabakis with a proposal for a joint venture in property development.
