KDF and firm in fight over Sh2.8b prime land in city

The Kenya Defence Forces (KDF) is embroiled in a tussle with a private company over Sh2.8 billion prime land in Nairobi's Roysambu.

In a petition to the National Assembly's Land Committee, Jewel Complex Limited said it had paid Sh330 million for the two-acre land as deposit, but KDF and officers from the General Service Unit (GSU) stopped it from possessing the property.

Jewel states that it developed an interest in LR No 5875 and LR No 23393, which it established belonged to Kasarani Mall Limited, a subsidiary of Uchumi Supermarkets Limited.

Uchumi accepted an offer by Jewel to purchase the land at Sh2.8 billion, subject to its terms and conditions.

In a letter dated April 27, 2018, Uchumi, while accepting Jewel's offer, placed a condition that the purchaser should be willing to complete the process of extending a lease agreement.

“We are in the process of completing the extension of lease for the LR No: 23393, unless a reliable assurance is provided that the extension of lease will be completed or a condition given that the purchaser shall complete the process,” reads part of Uchumi’s letter to Jewel.

The letter signed by Uchumi’s chief executive Mohamed A. Mohamed had also put it a condition that the purchaser (Jewel) must be able to pay 20 per cent deposit in a designated Escrow account and provide proof of its ability to complete the balance.

However, during subsequent discussions and deliberations, it emerged that Uchumi Supermarkets Limited had initiated amalgamation process for the two properties and that a new LR No 25544 had been issued for the two titles now consolidated and an agreement sale was entered between Kasarani Mall Limited and Jewel Complex Limited on September 20, 2018.

“Jewel is an interested party in this matter as purchaser of LR No.5875/2 and 23393 as consolidated into LR No: 25544 and any determination of the issue before the committee touching on the aforesaid land will directly impact on its rights to property, having committed a substantial amount of money by way of deposit,” said Jewel Managing Director Boniface Maina.

While appearing before the Racheal Nyamai-led committee, Jewel wants the National Assembly to adopt that the land which it had already paid Sh330 million deposit be declared their property.

“We want this committee to establish that the land which we have already paid Sh330 million be declared as our property,” Mr Maina told the committee.

Accompanied by his legal counsel Cecil Miller, Maina argued that the comapny did due diligence from the Lands Registry and do not understand why KDF is occupying the property.

Jewel paid the deposit to Messrs Hamilton Harrison and Mathews Advocates pending completion of the sale.

The Sh330 million was financed by Equity Bank.

According to Maina, Jewel had inquired from the Ministry of Lands and Housing why the military had taken over the land it was buying and had already entered an agreement but was informed that the matter was before Parliament.

The committee is yet to invite KDF to shed more light on how it acquired the land which is being contested.