Housing Finance wins five year Komarock land case

April 11, 2012 … Kenya Building Society (KBS) Limited, a subsidiary of Housing Finance has won a five year court battle for a prime piece of land located in Komarock estate Nairobi.

In their ruling, Arbitrators, Norman Mururu and Bernadette Quadros ruled in favour of K.B.S to claim vacant possession of the land, TITLE NO. NAIROBI/BLOCK 11344 Komarock. The plot measures approximately 33.5 acres.

The Arbitration arose from a Joint Venture Agreement dated 14th July 2004 between KBS Limited and Santack Enterprises Limited for the development of a housing project in Komarock phase five.  The HF subsidiary terminated the contract on the 15th June 2007 citing the inability of Santack Limited to perform as per the contract.

Santack went to the High Court and obtained an injunction to restrain K.B.S. from terminating the Agreement and evicting the firm from the Komarock site, upon which the High Court referred the matter for Arbitration as contemplated in the Joint Venture Agreement.

K.B.S. appointed the law firm of Mohammed Muigai Advocates while Santack appointed two law firms namely Ramesh Manek Advocates and Kimamo Kuria Advocates.The Arbitration commenced on the 8th February 2008 before Arbitrators Norman Mururu and Bernadette Quadros and took approximately 4 years. The Arbitrators have since ordered Santack to vacate and handover the parcel of land to KBS within 30 days of collection of the Award.

K.B.S. will pay Santack Kshs 18,480,304 being the value of improvements created by the respondent on the subject land and Santack shall in turn pay K.B.S. Kshs 23,453.145 being loss of venture income arising from the termination of the Joint Venture Agreement.

Santack was also ordered to pay the costs of the Arbitration to be agreed or taxed by the High Court.

Joseph Kania
Company Secretary and Head of Legal
Housing Finance