A contractor has sued an investment arm of Nairobi Pentecostal Church for a breach of contract over its Sh7 billion gated community estate in Karen.
Dinesh Construction Company has sued La Nyavu Gardens Limited for not paying it Sh181 million as agreed in their contract.
The company claims that it was awarded a contract of Sh260 million but La Nyavu only paid Sh78 million.
The company director, Dinesh Bachu, said despite completing the works to a reasonable level at Borgani Gardens, project owner La Nyavu has not paid the remaining money.
"The plaintiff executed its duties to a reasonable level despite a few hiccups during the period occasioned by La Nyavu and we pray for judgement against the respondent," Bachu said in the suit filed at the Commercial Division in Milimani High Court, Nairobi.
In another suit in the court, the church has been stopped from going ahead with the housing project at Bogani pending the determination of a dispute over failure to issue title deeds to members.
Justice Joseph Onguto issued the directive last week following failed mediation attempts in the case between La Nyavu Savings and Credit Co-operative Society whose membership is drawn from worshipers of the church.
Church followers through lawyer Tom Macharia said they secured loans running to millions of shillings six years ago to finance the purchase and development of the proposed project to no success.
The 130 church followers said after several attempts, they decided to move to court seeking to compel directors of the project to issue title deeds to plot owners.
While accusing La Nyavu of breaching their mutual agreement, the investors said the firm should identify, sub-divide and demonstrate clear demarcation of the plots to allow proper ownership.
Macharia said the firm’s directors frustrated the completion of the transaction for the last two years by imposing unreasonable conditions and threats on aggrieved members.
"My clients have never been issued with duly registered sub-lease and a share certificate in the property," Macharia said.
The church members argue that if they could be having the titles, it could have assisted them to secure bank loans and make other strides in their lives.
La Nyavu Gardens invited prospective church members in 2009 to invest in the housing project.
The firm was to purchase the entire shareholding in Metcourt Hostels Ltd that was to translate to 114 acres of land for a gated community.
La Nyavu Gardens managed to secure majority shareholding after its member’s contributions paid off a loan at Equity Bank held by Metcourt which was then allowed to retain 41 acres with 73 acres sub-divided for sale.