Court stops NSSF from auctioning tenants' Sh500 million goods

Court stopped the plan by NSSF to auction goods belonging to traders at Hazina Plaza

The National Social Security Fund (NSSF) has suffered a major blow after the High Court stopped the auction of goods worth Sh500 million belonging to tenants in Mombasa.

Justice C Yano of the Environment and Land Court stopped the plan by NSSF to auction goods belonging to traders at Hazina Plaza to recover disputed rent arrears.

The traders filed a suit against NSSF, alleging that the fund was trying to illegally auction their property over allegedly fictitious rent arrears.

“A temporary order is issued for 14 days restraining the third respondent (NSSF) from attaching the plaintiff’s goods in plot LR Number Mombasa BlockXX/328/326,” states the order.

Further orders

The judge further ordered NSSF bosses to appear in court within 14 days and warned that any party that failed would be prosecuted for contempt of court.

The traders filed a case to halt the fund’s move to seize and auction their goods on Tuesday afternoon.

According to the suit papers, the traders said they rented the sub-leased premise from Tecno Holdings, which had leased from NSSF.

“Tecno Holding leased the property from the NSSF and therefore he (Tecno) is the head lessor according to the lease,” read the court papers.