Now Pattni plans seven-star hotel

The notice also warned that anyone who trespassed on the property risked to be prosecuted. This was a position which was reinforced by Prof Chweya, who said: “The ministry’s position has not changed.” The PS conceded that there were many players involved in the land, whose LR number has changed to 209/18866.

What remains mysterious is how the ministry of Lands could ignore a caveat placed by another ministry on its property. On August 30, 2004, the then Commissioner of Lands, Ms Judith Okungu, in a plaint in civil case 954/2004, sought the court’s authority to terminate the contract between the government and Tourist Paradise Investments Ltd and the National Industrial Credit Bank (NIC).

The bank had granted Tourist Paradise a Sh60 million loan using the property as collateral without first obtaining written consent of the Commissioner of Lands. Ms Okungu further said in her plaint that Tourist Paradise Investments Ltd were in arrears totalling more than Sh76 million and sought the court’s authority to re-enter the land and repossess all the buildings and equipment.

A brother to Pattni confirmed that the government had granted Galaxy Walker Ltd a 50-year lease for the property but was “surprised” that there was a caveat on the land by the Office of the Vice-President. “A caveat? I will check and let you know,” Mukesh told the Saturday Nation during an interview at a Nairobi hotel.

He said the Tourist Paradise Investments Ltd had cleared a Sh90 million debt as a result of accumulated rent arrears for the Museum Hill property. Mukesh said Galaxy Walker Ltd intended to construct a Sh4 billion project that will take a maximum of three years to complete.

He shared drawings and an architect’s impression for the grand project but would not divulge how they intended to raise the money. “We have investors from Dubai who are expected in the country this Friday,” he responded when asked where the money to put up the project will come from.