Court blocks auction of 14 Riverside Drive property in Ksh.577M dispute

Justice Moses Ado ruled in favour of Cape Holdings, setting aside the warrants and auction notices that had paved the way for the sale of the property following a long-running commercial dispute with Synergy Industrial Credit Limited.

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

The ruling means that any fresh attempt to auction the property must begin afresh, with the reserve price determined by the court.

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.

The company subsequently 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.

Source: Citizen Digital