Saudi Arabia's Nairobi embassy in lease dispute
What you need to know:
- The firm now wants Justice Thuranira to order the embassy to pay it damages in an amount that the court shall deem fair for the loss of business.
- The Saudi Arabian embassy was to pay Sh17.7 million yearly for the seven apartments before it terminated the agreement.
- The Saudi Arabian embassy however says Plumcon delayed in completing the requested fittings in the apartments.
- The embassy says its staff were to occupy the apartments on November 26, 2011 but that the units were far from ready by then.
Real estate firm Plumcon East Africa has sued the Saudi Arabian embassy for backing out of a deal that was to see it lease seven high end apartments in Nairobi’s Arboretum area.
Plumcon says it made specific repairs to the seven apartments in 2012 at the request of the Saudi Arabian Embassy which afterwards refused to take up the housing units.
The firm now wants Justice Thuranira to order the embassy to pay it damages in an amount that the court shall deem fair for the loss of business. The Saudi Arabian embassy was to pay Sh17.7 million yearly for the seven apartments before it terminated the agreement.
The Saudi Arabian embassy however says Plumcon delayed in completing the requested fittings in the apartments. The embassy says its staff were to occupy the apartments on November 26, 2011 but that the units were far from ready by then.
Plumcon however insists that it finished all repairs early enough and attempted to hand over the keys to the Saudi Arabian embassy on November 24, 2011. The embassy however refused to accept the keys and terminated the lease agreement, the firm says.
“We put in all efforts in place to complete the seven apartments as agreed. We demanded that they reconsider their decision since we had made the apartments to their specifications,” Plumcon says.
Saudi Arabia’s embassy has now filed an application to dismiss the suit, arguing that it enjoys diplomatic immunity hence cannot be sued.
