A company associated with Mombasa governor Hassan Joho has lost a property estimated to cost Sh6 billion to a firm linked to Nairobi businessman Francis Mburu.
This is after an arbitrator declared that Mburu's Exclusive Estates Limited (ELL) was the rightful entity to hold the property, throwing out a claim by Aftraco Limited.
The arbitrator found that though ELL had not bought the property, it had entered into a deal with the defunct Kenya Post and Telecommunications Corporation (KPTC), now Telkom Kenya, to develop it some 30 years ago.
The 60-acre parcel of land, which is part of the entire 79-acres, is situated along Ngong Road in Nairobi and the estimation was done eight years ago at Sh100 million per acre.
The arbitrator, Jehrabum Zanmohhammed, in a decision on September 6, 2019, said that KPTC had excised the 60-acres to Postel Housing Corporative Society for construction of houses for its workers, which was entrusted to ELL.
“It’s declared that the Deed of Assignment dated 15th January 2009 between Postel Housing and Exclusive Homes and the decree issued in this regards on 22nd January 2009 are valid and binding on this tribunal,” She said.
She said that the land is to be taken by ELL, rubbishing Afraco claims that it bought the entire 79-acres from Telkom Kenya in July 5, 2018 at a cost of 1.52.
Joho's firm claimed that it paid Sh152 million upfront.