Sanctions imposed against former Central Bank of Kenya (CBK) Governor Nahashon Nyagah over the transfer of property in the Tatu City project will remain in force, the High Court ruled on Tuesday.
The court reinstated an order that had blocked the sale and transfer of more than 2,000 acres of rich farmland estimated to cost Sh5.3 billion to third parties.
Commercial court Judge Francis Tuiyot ruled it was in the interest of all the parties “to preserve the property” in Kiambu County which has been at the centre of a bitter fallout between local investors and their foreign counterparts with each side accusing the other of effecting fraudulent transfers of ownership and directorship of real estate company.
Justice Charles Kariuki had issued conservatory orders on March 24.
The sanctions, which were first imposed before Mr Nyagah’s lawyers challenged it.
The international investors have accused their Kenyan minority partners of attempting to alienate and sell the land in Kiambu County to interested parties in a deliberate attempt to swindle them before the ownership dispute is heard and determined in court.
Senior Counsel Ahmednassir Abdullahi, who had represented the parent firm Tatu City Ltd and its subsidiary Kofinaf Company Ltd, had argued before that the properties were at risk of “being off-loaded to prospective buyers and the foreign investors were likely to suffer great financial loss.”
Lapsed on March 15
The conservatory orders had lapsed on March 15 when the matter was mentioned before the deputy registrar without the knowledge of representatives of the international businessmen.
They had protested about the likelihood of the property changing hands illegally.
The investors say they had already sold the prime land to a local developer — Daykio Plantations — but have been unable to transfer ownership upon discovery that their local rivals had unlawfully secured possession of the property through Purple Saturn Properties Ltd.
Proceedings are set to resume on March 1.