Uchumi tussles with KDF over Sh2.8bn land

The Kenya Defence Forces (KDF) and Uchumi Supermarkets are locked in a standoff after the military took over a Sh2.8 billion piece of prime land, which the struggling retailer is in the process of selling to a church.

Five months ago Uchumi reached an agreement with Jesus Winners Ministry to sell the 20-acre land on Thika Road for Sh2.8 billion.

The land, which gave Roysambu estate its name, is tucked between Thika Road Mall and Safari Park hotel.

Jesus Winners Ministry was buying the land through its investment arm, Jewel Complex Limited. The company paid a Sh330 million deposit in November.

However, two weeks ago KDF moved onto the land whose ownership has been in contention since 1985. The soldiers have since pitched tent and are keeping vigil day and night.

DEBTS

They have even brought in some military hardware, such as trucks, and placed a tank and sand bags at the entrance of the land.

By Wednesday the soldiers had completed putting up a fence around the property in green military colours.

Struggling Uchumi was expecting to use proceeds of the sale to offset its over Sh3.6 billion debts.

The supermarket, which is on the brink of collapse, has been fighting an insolvency petition filed by its suppliers last year.

Uchumi chief executive officer Mohamed Ahmed Mohamed said he had initiated talks with the KDF.

“The Kenya Defence Forces has occupied the Kasarani land. We are engaging them to resolve the issue. We are confident that this matter will soon be resolved,” said Mr Mohamed.

SIDHI SPURNED

The KDF insists that it owns the land, which is known as KDF Roysambu Camp. “The ongoing activities at the camp are a routine military exercise,” KDF spokesman Paul Njuguna told the Nation.

“The land on which the camp is situated belongs to the Ministry of Defence,” he said.

Ironically, KDF’s move comes at a time when Uchumi is fighting a court battle with another company that it entered a sale deal with, only to clinch another pact with the church after receiving a deposit.

Sidhi Investments wants Uchumi compelled to honour a 2005 sale agreement in which the company was to buy the property for Sh118 million.

Sidhi had paid a 10 per cent deposit before the deal flopped. Uchumi has previously successfully fought off attempts by two squatter groups that claimed to own the land LR 5875/2.

OWNERSHIP

The retailer bought the land from Solio Construction Company in 2001 through their wholly-owned Kasarani Mall Limited.

The National Land Commission (NLC) however flagged the transaction in 2017.

The NLC investigations found that Solio Construction had twice acquired ownership documents for the land before the lease to its previous owner — Meshumor Jacob — had expired.

Mr Jacob’s 99-year lease was to expire in 2003, according to the NLC probe. The government’s initial intention was to build a military school on the property.

The Department of Defence, however, said the land was unsuitable for the school. The acquisition failed when Mr Jacob sued the government.

The Court of Appeal in 1997 ordered that the government and Mr Jacob negotiate out of court.