Cash strapped Muga Developers Ltd, associated with Peter Kiarie Muraya and Susan Wacheke Muraya’s Suraya properties has been placed under receivership.
In a notice published in the local dailies, Messrs Muniu Thoithi and George Weru were appointed joint receivers and managers of Muga Developers by Equity Bank.
“Following the appointment, receivers are conducting the affairs and business of the company. The powers of the receivers extend to all assets and undertakings of the company. The powers of the directors in terms of dealing with the company’s business and assets ceased on appointment of the receivers,” noted Equity Bank.
“No one other than the receivers/their representatives is authorised to deal with the assets of the company,” added the lender.
This comes a few days after China Wu-Yi, a Chinese contractor, declared that it wanted at least 10 houses from Suraya Properties and Muga Developers to compensate a debt owed to them.
The houses in question entail phase one of Fourways Junction along Kiambu Road.
The houses are charged to a Ksh1.76 billion loan from Equity Bank, making the case more complicated.
On its side, China Wu-Yi says had an agreement with the companies to posses some of the houses as part of the payment for its services in the project.
As at August 2011 Suraya and Muga owed the contractor at least Ksh166 million. After alleged talks, it was proposed that the two companies paid Ksh30 million for bill of quantities and a further Ksh57 million was to be paid in cash after the houses were sold and the balance of Ksh79 million was to be repaid by transferring four hibiscus villas and two tulip apartment units to the construction company.
In June 2019, the Murayas were accused of forging their signatures to register Muga Developers Limited which owns Fourways Junction Estate.