Court Rejects Bid to Block Co-op Bank Pursuit of 10 Syokimau Homes Over Sh1.39bn Debt
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The Court of Appeal has dismissed an application seeking to stop Co-operative Bank from pursuing 10 disputed homes in Syokimau tied to a Sh1.39 billion debt owed by developer Loneview Developers Ltd.
The Court of Appeal has rejected a bid to stop Co-operative Bank from pursuing 10 disputed homes linked to a Sh1.39 billion debt owed by real estate development company Loneview Developers Ltd.
A three-judge bench dismissed Mathew Musau's application for an injunction, saying his intended appeal would not be rendered worthless if protection was denied. Mr Musau moved to the Court of Appeal after the Environment and Land Court in July 2024 refused to protect the 10 units at Loneview Estate that he claimed as his.
The dispute centres on a parcel of land in Syokimau, LR No. 12916, registered to Loneview Developers and charged to Co-op Bank for Sh1 billion. The bank told the court that Sh1.39 billion was outstanding as at October 26, 2023.
Mr Musau claims Suraya Property Group Limited surrendered the 10 homes to him under a settlement deal after it failed to complete payment for land previously owned by his family. The property was initially registered as LR No. 7149/24 in the name of Sebastian Kathilu, Mr Musau's father.
He told the court that Peter Muraya of Suraya approached him on July 24, 2008, with a proposal to develop maisonettes on the land through a joint venture. The Court of Appeal's decision leaves the bank free to continue enforcement against the disputed units while the underlying ownership questions remain unresolved.