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Prominent Family Loses in Multibillion Fourways Junction Suit

Prominent Family Loses in Multibillion Fourways Junction Suit

A
prominent Kiambu family has failed to reverse a deal reached with Equity Bank
last December over the multibillion-shilling Fourways Junction Estate dispute.

Ms
Nancy Gatabaki and her daughters Esther Susan Wangari and Josephine Gathoni
sought to have the agreement, which was approved in court last year, reversed,
claiming it was full of mistakes.

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They
told Justice David Majanja that all issues concerning the estate’s development
should be resolved before consent is granted.

However,
Justice Majanja stated that a review of the correspondences between the parties
shows that the consent was freely negotiated and the family instructed its
attorneys.

“As
I have previously stated, the consent is detailed and I find it hard to believe
that the plaintiffs’ previous advocates could have colluded with the bank’s
advocates to craft such an elaborate and detailed consent without the
involvement or instructions of the plaintiffs,” Justice Majanja said.

The
family claimed to be the registered and beneficial owners of two parcels in
Nairobi, off Kiambu Road, measuring approximately 200 acres and 6.53 acres,
respectively.

They
claimed that the development’s transactions, such as the formation of the
company that donated the land, the charging of the property to Equity Bank, and
the loan amounts owed to the Bank, should be resolved. They asked the court to
order Muga Developers, Suraya Sales Ltd, Suraya Property Group Ltd, and Equity
to account for the funds owed to them after the development units were sold.

The
family was to receive an additional 18 housing units worth Sh172 million as
part of the agreement. The agreement also calls for them to pay Equity Sh60
million in December, with the remainder due in January 2022. All claims against
Equity were required to be withdrawn by the family.

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