A former MP has failed to stop the Local Authorities Provident Fund from temporarily taking over Mariakani Estate in Nairobi to collect rent and settle a debt of billions of shillings.
Former Madaraka MP Benson Mutura had asked the Court of Appeal to block Lapfund from taking over the estate pending an appeal but the judges dismissed his request.
He had also sought an order directing the proceeds of rent from the estate be paid into a joint escrow account in the names of the parties’ advocates.
Appeal judges Wanjiru Karanja, Daniel Musinga and Sankale ole Kantai said the application by Mutura failed to demonstrate his intended appeal is arguable.
“It may be of some consolation to the applicant [Mutura], however, to know that in the event his appeal succeeds, the property in question can always be transferred to the fourth respondent [Nairobi county government] and the appeal bears no risk of being rendered nugatory [meaningless] in the event it succeeds,” the judges said in their decision dated August 7.
They added, “Our conclusion therefore is that this application fails.”
The former MP said that sometime in 2012 the Nairobi county government and Lapfund entered into an agreement whereby the county transferred several properties owned by the old City Council of Nairobi.
The agreed swap was meant to offset some statutory debt owed to Lapfund.
The decision was approved by the City Council of Nairobi and was carried out.
Mutura questioned that agreement mainly on grounds it did not mention Mariakani Estate but listed several other estates. He also cited procedural grounds.
He contended the tenants are afraid of being evicted from their houses for non-payment of rent if ownership of the property changes.
Before the High Court, he had sought orders to declare the transfer of Mariakani Estate to Lapfund null and void.
Lapfund opposed the case at the High Court, saying the transfer was aboveboard and there was no cause for apprehension as no tenant would be evicted if they continued to pay rent.
The High Court dismissed the case, leading to the appeal.
The appeal is yet to be determined.
(Edited by V. Graham)
