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Tatu City fate to be known in January

Posted In NEWS - By admin on Tuesday, December 18th, 2012 With No Comments »

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The much-awaited ruling on the multi-billion-shilling Tatu City project has been postponed to next month.

The ruling, which was scheduled to be delivered on Wednesday at the High Court, is to resolve whether two companies behind the project will be dissolved.

The ruling follows two winding up petitions against Tatu City Ltd and Kofinaf Ltd — real estate companies that in 2010 embarked on building a modern live-work-and-play city on the outskirts of Nairobi.

The presiding judge was last month promoted to the Court of Appeal from the High Court, which could have occasioned the delay.

The development — to be known as Tatu City — targets to attract residents, companies and retailers who wish to live, work and play in “a modern, well-planned urban development in East Africa”, according to the companies.

The project is to be built on some 2,400 acres of land previously used for coffee growing. The construction was estimated to cost Sh240 billion.

Local investors, led by former Central Bank Governor Nahashon Nyaga, Bidco Oil chief executive Vimal Shah and businessman Josphat Kibogo Kinyua, brought in Moscow’s Renaissance Capital to help finance the project.

Long-term agenda

Upon completion, the city would accommodate 70,000 residents and 30,000 day visitors, according to its planners, who have primed the project as an important contribution to Kenya’s long-term development agenda, the Vision 2030.

As soon as the project took off, wrangles erupted between the companies’ shareholders and directors over management of the sister companies.

Minority shareholders Rosemary Wanja and Stephen Mwagiru, took on directors and majority shareholders, accusing them of excluding them from the affairs of Tatu City.

They were joined by Ms Anne Walker, who also claimed interest in the companies, and they filed two winding petitions in succession against Tatu City Ltd and Kofinaf Ltd.

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