Investor sues Telkom Kenya over Sh1.52 billion land dispute

Telecoms

An investor has taken Telkom Kenya to court over alleged breach of an agreement involving the sale of 79 acres of prime land in Karen, Nairobi for Sh1.52 billion.
Aftraco Limited was on Wednesday granted interim orders restraining Telkom Kenya from selling, alienating or mortgaging the property until the dispute is determined.

Commercial Court Judge Daniel Musinga also temporarily tied Telkom Kenya to the terms of the agreement for the sale of the prime land that was earmarked for housing development.

Through lawyer Ahmednasir Abdullahi, Salim Sandru, the managing director of Aftraco, accuses Telkom of acting against the terms of the contract entered on July 5 for the sale of the land along Ng’ong Road.

Sandru says he had paid Telkom Sh152 million being 10 per cent deposit of the purchase price and was in the process of paying the remaining Sh1.37 billion when Telkom cancelled the sale. Sandru said the commercial value that stands to be lost if the agreement is not effected could not be compensated through monetary damages or another piece of land.”

Sandru said Telkom Kenya Chief Executive Michael Ghossein had unilaterally rescinded the binding agreement. Ghossein had informed Aftraco that since a third party by the name Exclusive Estates Ltd had obtained an injunction against the Registrar of Titles, the contract between Telkom and Sandru had been frustrated.

But Abdullahi submits that the mere fact that a court has issued temporary stay or injunction in favour of a party that is not privy to the contract, “cannot in law frustrate the agreement between Telkom and Aftraco.”

Ghossein further told Sandru that Telkom was willing to refund the Sh152 million already paid as deposit and cancel the deal. Aftraco contends that Telkom Kenya intends to sell the property to a third party at a higher price.