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14 Riverside Ksh1.6 Billion Dispute Heads To Supreme Court

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The Supreme Court of Kenya will now hear an eight year-old case where Synergy Industrial Credit Limited is seeking a Ksh1.6 billion compensation from their former partner, Cape Holdings over the development of Multi-billion 14 Riverside office suites.

Synergy had invested into the project up to a tune of Ksh577 million but later bolted out, citing diversion of funds and slow down of construction by Cape Holdings.

Consequently, Synergy successfully petitioned for Ksh1.6 billion compensation, that included interest and lost business for nine years, at the High Court. However, Cape Holdings proceeded to the Court of Appeal, which overturned the High Court ruling.

In a battle whose end is not near, Synergy went to the Supreme Court to seek the final word.

However, Cape Holdings wanted the Supreme Court to throw away the case, arguing that it has no jurisdiction to hear an arbitration row that had been settled at the High Court.

Read: Ksh6 Trillion Mineral Rights Could Be Awarded To An ‘Unknown’ Company, After The Exit Of Jacob Juma

They have however been dealt a blow after Chief Justice David Maraga agreed to hear the case, terming Cape Holdings argument as one without merit.

“We therefore find that the present appeal is properly before use, and that the preliminary objection is without merit,” said Justice Maraga.

Synergy had signed a Ksh700 million deal for the development of the 14 Riverside, owned by Sanghrajka family. The office complex with a 100-room hotel was opened in 2012.

Synergy paid Ksh577 million in exchange for one of the office blocks, which never happened after a disagreement that saw them walk out.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

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