Developer envisioned Sh2.1 billion estate on land demolished city houses stood on

Police officers takes guard as the caterpillar demolishes houses at Kayole. [Beverlyne Musili/Standard]

Muthithi Investments Limited had planned to build a multi-million shilling project on the land where Nyamavilla estate in Kayole stood.

The developer who is behind the demolition of the estate had envisioned putting up a Sh2.1 billion investment.

Court papers seen by The Standard show that the firm expected to rake in profit of between Sh500 million and Sh1 billion by selling the houses, a nursery school and a shopping complex.

The case that has led to the demolitions was ruled in May 2014 in the Environment and Land Court Civil Suit 498 of 2004.

It pitted Muthithi Investments Limited and 23 defendants who received court eviction orders.

Judge J. M. Mutungi, who delivered the judgement in 2014, also ordered Muthithi to be compensated Sh1 million “for being prevented by the defendants from utilising its parcel of land.”

The sole witness testifying on behalf of the firm against the defendants was identified as Peter Thirima Ndungu.

He was named as a project manager at Muthithi Investments Limited.

Leasehold grant

The judgement quotes Ndung’u saying that the company was granted by the City Council of Nairobi a leasehold of 99 years from February 2000.

Muthithi then also obtained approvals to sub-divide and develop the property into a housing estate.

However, the developer argues that the defendants continued to remain in the property.

“They continued to erect structures in the said plaintiff’s (Muthithi) property without any right or authority and thus have continued to frustrate and prevent the plaintiff from utilising the suit property in the manner the plaintiff intended,” reads the court papers.

Ndung’u testified that were it not for the defendants, they would have spent about Sh978,280,000 to construct 224 three-bedroom units, which would have been sold at Sh4 million each and 464 two bedroom units, which would have been sold at roughly Sh2.5 million.

“Overall Muthithi would have had a gross revenue of about Sh2.1 billion and would therefore have made profit of between Sh500 million to Sh1billion,” Ndung’u testified.

The judgement also notes that the witness stated the two nursery schools and a shopping complex would have been sold for Sh30 million and Sh50million, respectively.

 

Proved case

“The witness during his testimony gave evidence as to what use the plaintiff intended to put the suit premises and testified that it was intended to develop a housing estate where houses of varying categories would be constructed and sold to members of the public,” said the judge. Ndung’u also explained how Muthithi had come to own the land, saying that the lease in favour of Muthithi Investments Limited was registered on September 17, 2001 as title I.R. 87206/1.

Muthithi is linked to tycoon Mike Kamau Maina, who is also the proprietor of Marble Arch Hotel in Nairobi.

The judge ruled that Muthithi had proved its case against the 23 defendants. He ordered that they vacate the property. On Tuesday, bulldozers and excavators descended on the flats in the land, prompting a mass exodus.