A woman yesterday took a developer to court over a housing project worth more than Sh1 billion. Following the application by Nancy Gatabaki the High Court has now issued orders restraining Muga Developers, Suraya properties and seven others from transferring completed houses at Fourways Junction off Kiambu road, which are subject of the dispute, pending the determination of the case. The order was given by Justice Leonard Njagi.
In her suit papers Mrs Gatabaki said she and her husband Dr Samuel M. Gatabaki are the original owners of the piece of land measuring 200 acres. Six years ago, Peter Kiarie Muraya of Suraya properties approached her husband and they entered into a joint venture to develop the piece of land. They formed a company, Muga Developers with each of the two parties owning equal shares on a 50-50 basis in terms of shareholding and directorship, the court documents indicate.
Suraya Properties was supposed to inject funds into the project and also invite other investors. Mrs Gatabaki says she has since been sidelined completely from participation in the affairs of the company they formed together and accuses Muraya and his wife Sue, of failing to honor the development agreement.
Mrs Gatabaki says the nominal share capital was also changed from the initial 100,000 to 10,00,000, without her consent. The shareholding was also changed and she was only given 33 per cent with the rest going to Suraya which is to her detriment. She said she was surprised to learn that 12 per cent of the company shareholding was transferred to another company called Frangie Investment for Sh15 million. She said she had been completely excluded from attending meetings of Muga developers, a company she co-owns with the Murayas and was fearful that she would lose her property if the court did not intervene. She said the Murayas and others in the company had between September 2009 and October last year, taken loans on the property totalling Sh600 million.
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