Gatabaki paid Sh402m in estate deal
A grandmother who had threatened to stop a Sh30 billion housing project has been paid Sh402 million as compensation, a lawyer told the High Court on Thursday.
Mr Cecil Miller told Commercial Division judge Jonathan Havelock that Mrs Nancy Gatabaki had received Sh402 million out of the Sh735 million owed to her by Muga Developers Ltd and Suraya Property Group.
The money is part of a deal signed on September 6, 2011. (READ: Woman wins Sh725m in property case)
The 70-year-old Mrs Gatabaki moved to court last August seeking orders to enforce her rights after what she claimed was the mortgaging of a 100-acre property by her husband, Dr Samuel Gatabaki, without involving her.
She named Muga Developers, Dr Gatabaki, Suraya Property alongside six others, including three banks, as defendants.
The banks have financed the project which is being undertaken by a Chinese Company.
Fourways Junction Housing Project, an estate containing executive houses in Kiambu County, is built on the land.
But the parties reached an agreement and Muga and Suraya agreed to pay her Sh735 million.
Mr Miller said pursuant to a consent order recorded before Mr Justice Mohammed Warsame, Muga Developers jointly owned by the plaintiff (Mrs Gatabaki) and her husband, Dr Gatabaki, released Sh140 million, 15 days after signing the pact.
“This week, my clients paid Sh262 million to Mrs Gatabaki. I have a letter from the bank showing the payment,” Mr Miller stated.
He said that the grandmother will receive another Sh50 million for her shares in Jacaranda Landowners and a further Sh10 million as compensation for the demolition of her rental houses at the project site.
“A balance of Sh323 million will be paid to Mrs Gatabaki in form of houses in the next 18 months,” Mr Miller told the commercial division judge.
The houses and a school were demolished last December. The judge also heard that 3.6 acres had been set aside for Mrs Gatabaki and title documents are being processed.
Lawyers Ashford Muriuki and Ms Sheila Mugo for Mrs Gatabaki confirmed she had been paid. The lawyers disclosed that most of the terms of the consent order had been executed.
Only the one mandating the formation of a company known as Muga Holdings Limited that will own and manage shopping malls and other recreation facilities within the ultra-modern estate is yet to be executed.
Mrs Gatabaki will be a shareholder of Muga Holdings, which is yet to be registered.
“Negotiations have not been concluded. We will report on further progress of the talks before this court on May 10, 2012,” said Mr Muriuki.
Justice Havelock congratulated the lawyers for steering on the negotiations which threatened the project.
The judge will be informed of the progress of negotiations on May 10, 2012.
Posted on the DAILY NATION - Thursday, March 8 2012