GDC in June 2010 rented a warehouse located in Nakuru from Sabco Millers and the agreement was renewed in November 2016 after the expiry of initial consent.
According to Sabco, GDC vacated the warehouse in June 2017 but allegedly without renovating the building, which the firm says cost Sh21.6 million to make the premise tenable again.
The Geothermal Development Company (GDC) is in a bitter dispute with its former landlord which has sued it for Sh28.9 million compensation and obtained judgment against the State firm.
Sabco Millers Limited in September 2018 moved to court accusing the State-owned firm, which had been its tenant since 2010, of running down its premise and failing to renovate after vacating the building.
GDC in June 2010 rented a warehouse located in Nakuru from Sabco Millers and the agreement was renewed in November 2016 after the expiry of initial consent.
According to Sabco, GDC vacated the warehouse in June 2017 but allegedly without renovating the building, which the firm says cost Sh21.6 million to make the premise tenable again.
“The defendant (GDC) was under an obligation to hand over the premises to the plaintiff in a tenable condition with utility bills that is water and electricity duly settled and the premises redecorated internally,” says Sabco in the court document. The firm claims that it received information from another party informing it that GDC had abandoned the premise without security and that it was being vandalised.
The property value was estimated to be Sh213 million as at 2015. The company claims that the building remained unoccupied for 13 months from June 2017 since it was in a poor state.
To mitigate further losses, it says it spent Sh21.6 million on renovation which it is now seeking to recover from GDC. Further, it claims that it lost rental income of Sh6.7 million and incurred Sh520,000 cost to maintain security at the premise, bringing the total claim to Sh28.9 million.
Sabco Millers Limited on November 7, 2018 obtained judgment after GDC failed to enter appearance. The firm on December 14, 2018 obtained warrant of sale that empowers it to attach the GDC properties.
But GDC on December 20, filed application seeking to set aside the judgment arguing that it had entered appearance within the stipulated time, and accused the firm of concealing facts from the court.
GDC said the judgment was entered ex-parte yet there was response on record at the time.
Justice Maureen Odero on December 24 suspended execution of decree against GDC pending inter parties hearing of the dispute.
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