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Credit Bank stopped from selling Upper Hill property over Sh1.2bn debt
A view of the foundation of The Pinnacle, which would have been Africa’s tallest building in Upper Hill, Nairobi in this picture taken on April 25, 2018.
The High Court of Nairobi has stopped Credit Bank from auctioning a prime building project in Upperhill over a Sh1.2 billion loan advanced to Jabavu Village Limited and Hasscon Pharmaceuticals Limited.
“That a temporary injunction is hereby issued restraining the respondents, whether by themselves, their servants, agents or any person claiming through or under them from entering, selling, taking over advertising, offering for sale or in any matter whatsoever interfering with that parcel of land known as Title no. Nairobi/block 31/219 pending directions on 17/02/2025,” Justice Peter Mulwa said in his January 31, 2025 ruling.
One UpperHill is the registered owner of the land, which is charged to the bank.
Jabavu Village Limited and Hasscon Pharmaceuticals Limited were brought into the case as interested parties.
In the application, Kiprop Chepsergon, an advocate, said that Credit Bank advanced a loan to Jabavu Village Limited and Hasscon Pharmaceuticals Limited, which the two companies had been diligently servicing. He added that Credit Bank went on to demand the full payment of Sh1.2 billion, or it would proceed to auction the charged property.
One UpperHill Towers proceeded to tell the court that Credit Bank’s actions were malicious, as the bank had failed to comply with sections of the Land Act on the issuance of the relevant notices.
One UpperHill Towers also told the court that the bank had grossly undervalued the land, and if it was sold at that price, the company would suffer irreparable damage that cannot be compensated by way of damages.
“Additionally, the gross undervaluation of the suit property is a scheme by the 1st Respondent (Credit Bank) to commence further legal recovery proceedings for the balance of the alleged loan amount, should the sale of the suit property be allowed to proceed as stated by the 2nd Respondent (Purple Royal Auctioneers) …. Besides, the Borrowers have not defaulted in a manner that would justify the sale of the property,” the company said in its application.
Jabavu Village planned to build the tallest building in Africa, dubbed the Pinnacle Project, before it fell out with the lender.
The court is set to give further directions on February 17, 2025.
