The Nairobi City County government has lost control of more than 400 parking bays at Telposta Towers after a court found that it is private property belonging to Teleposta Pension Scheme Trustees.
Justice Samson Okong'o of the Environment and Land Court found that the defunct Nairobi County Council had surrendered the property to the pension scheme in 2005 at a cost of Sh15 million.
Having handed over and received payment, the judge said the city government had relinquished its interest in the disputed property.
After acquiring the property, the scheme developed it resulting to creation of 408 parking bays at the basement and a recreational area.
The other 45 parking bays that had been erected by the city council remained intact.
The scheme moved to court in 2010 after City Hall attempted to evict the security personnel manning the parking bays.
Nairobi also wanted to levy parking fees on the scheme's customers and tenants, a move that Justice Okong'o said amounted to trespassing.
The city county government had denied that it sold the property to the scheme, adding that the title deed that was issued after the plot was amalgamated with another was illegal, null and void.