Tussle threatens to stall another multi-billion shilling investment

A boardroom tussle is threatening to stall another multi-billion property development in the fast developing area along Thika Road.

Ms Nancy Wanja Gatabaki has moved to court and obtained temporary orders to stop development of 200 acres of land situated at the Fourways junction, off Kiambu Road, and connected to the upcoming Thika Super Highway by the Northern Bypass Road in Nairobi.

The project is estimated to cost over Sh2 billion.

Her complaint is that her other shareholders, Mr Peter Muraya and Mrs Sue Wacheke Muraya, have developed a scheme to defraud her and her husband, (Dr Samuel Gatabaki)  the land by illegally transferring it to Muga Developers Ltd, a company the two have systematically diluted her shareholding in from 50 per cent to 16.5 per cent without paying for the value.

Co-own the company

Muga Developers was formed to undertake the development of the 200 acres of land, where the Gatabakis were to provide land and the Murayas capital, but co-own the company on equal share in terms of shareholding and directorship.

However, Ms Gatabaki claims this is no longer the case and she has been “sidelined completely from participation in the affairs of the company and has discovered that both Mr Peter Muraya and his wife, Sue Muraya, have not honoured the development agreement as agreed.”

The two, Peter and Sue, are the owners of Suraya Property Group and Suraya Fourways Investments Ltd, specialising in real estate development.

Under the agreement, Suraya Property was to pay value for the 105 acres, Sh30 million on the ground breaking of the phase 1 project for 265 houses and Sh1.1 billion on completion.  This has not happened.

“The other shareholders, Suraya Property Group, Suraya Fourways Investments Ltd, Mr Peter K Muraya and Ms Sue Wacheke Muraya, have not injected any funds at all into the company,” she avers in her court documents.

The two, she claim have then transferred 12 per cent of the shareholding to Frangie Investment Ltd, for Sh15 million, without her consent.

Already, over 300 houses have been sold and are at different stages of completion, with Equity Bank having advanced the group Sh1.5 billion while I&M Bank has given Sh600 million, both amounts charged against the property.

The Murayas have also received over Sh1.95 billion from sales and pre-sales of houses constructed on the land.

The court gave an order freezing the accounts holding the money. 

Another development, Tatu City, which plans to construct a Sh240 billion modern estate in Kiambu County, has been derailed by a similar petition filed by Mr Stephen Mbugua Mwagiru and Ms Rosemary Wanja.

The two say they have been excluded from participating in the management and decision making of Tatu City.

However, in a rejoinder carried in a paid-up advert, the Suraya Property Group moved to clarify that they are committed to the completion of the project.

“Whilst these orders may cause delay in the completion and hand-over of the project, we are proceeding to court to set aside the temporary orders and shall keep you informed of the matter in court.”

Dr Gatabaki, who Ms Gatabaki claims to be her husband, has co-signed the Press statement.