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Hilton Hotel developer given 2 days to vacate plot

pinnacle

The foundation of The Pinnacle, Africa's tallest building and the Hilton Hotel at Upper Hill on May 23, 2017. PHOTO |DIANA NGILA | NMG

Developers of the Pinnacle Tower, which is set to host the 45-floor Hilton Upper Hill hotel and a 70-storey apartments and office block, have two days to vacate a plot they are currently using for parking and storage of building materials.

High Court Judge Bernard Eboso on Friday declared illegal the lease contract signed by the developer and the Trustees of Kenya Railways Staff Retirement and Benefits Scheme.

The judge found that the contract was signed with Jabavu Village, the developer of Pinnacle, when there was in force a court order prohibiting any dealing or development of the land pending determination of the suit or until further orders of the court.

The judge let the developers off the hook with regard to contempt of court, but found the Trustees of the Kenya Railways Staff Retirement and Benefits Scheme and its chief executive officers guilty of disobeying its orders.

“The 5th defendant (Railway Staff Scheme) and its CEO Simon Nyakundi committed an act of contempt of court when they entered into a contract of lease to Jabavu Village Limited,” said Justice Eboso, noting that the contract was therefore illegal.

Court documents show the initial dispute involved the Trustees of Sheikh Zayed, Kenya Railways and a firm identified as Pelican over the same piece of the land. The suit was filed in 2015.

The Trustees of Sheikh Zayed claim that the land was a gift by retired President Daniel Moi to the President of the United Arab Emirates (UAE) in 1990 and was registered in 1992.

READ: Uganda tycoon in Sh20bn Hilton tower land claim

The Railways Staff Scheme in its response says it owns the land.

The Trustees of Sheikh Zayed obtained a court order restraining Pelican from interfering with the property but the two firms have now joined hands to fight the developer, changing the direction of the dispute.

The Railway Staff Scheme, which joined the suit after the orders stopping the dealing had been granted, leased out the land to Jabavu Village Limited in March 2017, prompting the gulf-linked trustees to institute contempt of court proceedings.

The judge said the Railway Staff Scheme did not deny knowledge of the exiting court orders but defended themselves on the grounds that it did not bind them since they were not party to the suit.