Commercial Court Judge Eric Ogolla Friday upheld the withdrawal of the two major holding companies in the protracted legal dispute involving the ownership of the Sh240 billion Tatu City project.
However, minority shareholders are at liberty to challenge the decision by international investors of Tatu City Ltd and its main local subsidiary Kofinaf Ltd to exclude them from the management and control of the project.
Justice Ogolla acknowledged that the court’s deputy registrar had approved the October 22 application by senior counsel Ahmednassir Abdullahi seeking the withdrawal of the two firms from the civil suits that have derailed the development of huge tract of land in Kiambu County.
Aggrieved local partners led by former Central Bank of Kenya governor Nahashon Nyagah and industrialist Vimal Shah, have opposed the move by the foreign investors to pull out of the civil suits, on the basis that the four-year legal wrangles cannot be resolved without the participation of the parent companies.
Mr Nyagah and Mr Shah, who are represented by Mr Richard Otieno Kwach and Mr Nelson Havi, will present their arguments on November 17.
All the parties are required to submit and exchange their formal responses within seven days.
The bone of contention is a September 16 board meeting, in which all the directors of the two companies discussed circumstances that have created bad blood among them, resulting in the filing of a plethora of cases that have over-shadowed the development of the project over the years.