Court Blocks Auction of 14 Riverside Drive Property in Ksh.577M Dispute

The High Court has set aside the warrants and auction notices that had paved the way for the sale of a property within the 14 Riverside Drive development in Nairobi, halting a planned auction tied to a long-running commercial dispute. Justice Moses Ado ruled in favour of Cape Holdings.

The court also dismissed an objection by Synergy Industrial Credit Limited challenging its jurisdiction, and ordered allegations made by the company against the court to be expunged from the record.

The dispute dates back to 2010 and revolves around a property transaction involving the purchase of an office block within the Riverside development. Synergy had paid approximately Ksh.577 million as a deposit towards the purchase before the transaction collapsed, and later sought a refund, arguing that delays in completing the development had frustrated the agreement. Cape Holdings disputed the claims, maintaining that the delays were partly attributable to design changes requested by Synergy.

In his determination, Justice Ado found the process leading to the intended sale defective and invalid. The ruling means any fresh attempt to auction the property must begin afresh, with the reserve price determined by the court. The decision halts the planned sale but does not resolve the underlying dispute between the two companies.