Court gives National Social Security Fund green light on expansion of Hazina Towers

Kenya: The National Social Security Fund (NSSF) will continue expanding Hazina Towers after the High Court gave it a nod on the project housing Nakumatt Lifestyle.

Justice Lucy Gacheru made the decision, reversing an earlier one she had made barring NSSF from adding 31 more stories; after the supermarket chain through its parent company Nakumatt Holdings filed a suit to stop the construction of the additional floors to the building.

Nakumatt had managed to get interim orders but the judge failed to extend them, saying she could not grant an extension without the parties coming to an agreement.

“It has been submitted by NSSF that the acts complained of have been ongoing for the last eight months. Further that the orders of status quo are the same orders that have been sought in the plaint. I have considered the plaint filed by Nakumatt and indeed, that is the correct position,” she said.

NSSF had filed an application to challenge the interim order, arguing it had not been granted a chance to respond to the plaint by Nakumatt before issuance of the orders by Gacheru in September.

Gacheru in her ruling said the interim orders she had given were subject in the main petition. This is in agreement with the same plea placed before her by NSSF, who argued that granting the orders would be tantamount to determining the main suit while it is still at the hearing stage.

 LOST REVENUE

Nakumatt in its suit has argued that aside from losing revenue to the tune of Sh1.6 billion, the construction has left the building’s tenants and their clients at risk of injury as it presents a potential disaster that could affect even the general public.

NSSF had accused Nakumatt of obtaining the orders through concealing facts about the circumstances that lead to the commencement of the project. “Up to the time of filing this suit, there had been no agreement between Nakumatt and NSSF on the adverse environmental and social issues with reference to air pollution, water contamination and noise pollution,” said Nakumatt in its opposition to NSSF’s application.

The supermarket chain had brokered a deal with NSSF to lease the building in 2004 for a 20-year-term, meaning it will expire in 2023.

In the same suit, a Chinese firm that was awarded the tender, China Jiang Xi International, has asked the court to exonerate it from the suit, saying there are no allegations touching on it.

 Gacheru will mention the matter on November 13.