Thursday, November 7, 2013

Jockey Club backs Actis in land row with KFS


KDF soldiers patrol the Westgate Shopping Mall on September 24, 2013 after the terrorist attack. MPs say a scrutiny of the Closed Circuit  Television confirmed there was no looting by the multi-agency forces. FILE

KDF soldiers patrol the Westgate Shopping Mall on September 24, 2013 after the terrorist attack. MPs say a scrutiny of the Closed Circuit Television confirmed there was no looting by the multi-agency forces. FILE 
By GALGALLO FAYO

In Summary
  • The club has filed a separate suit at the High Court seeking declaration that it is the original owner of the land before it was transferred to Actis.
  • Kenya Forest Service has cast doubts over the validity of a title deed held by Actis and claims that the land is protected and part of Ngong Forest and that it is not among the seven, including Lang’ata Cemetery, Jamhuri Showground and Nairobi School, which were legally hived off from the forest.


Jockey Club of Kenya has backed private equity fund Actis in its legal battle with the forests regulator over a land ownership dispute that has derailed construction of a Sh2 billion office block on Nairobi’s Ngong Road.

The club has filed a separate suit at the High Court seeking declaration that it is the original owner of the land before it was transferred to Actis.

The Kenya Forest Service has cast doubts over the validity of a title deed held by Actis and claims that the land is protected and part of Ngong Forest and that it is not among the seven, including Lang’ata Cemetery, Jamhuri Showground and Nairobi School, which were legally hived off from the forest.

The ownership dispute has stopped the building of the 15,000 square metres office block that started in October last year and was to end in December this year.
“A declaration that the grant issued over all that piece of land known as Land Reference Number 9937 situated in Nairobi and…valid to render the petitioner (Jockey) the registered proprietor of the said land containing by measurement 407 acres,” reads the orders sought by Jockey Club, a members-only outfit that started the sport of horse racing in Nairobi 100 years ago.
Declaration

Actis, which has raised Sh24 billion from investors for ventures in Africa’s real estate, said it acquired the land from the Jockey Club of Kenya, which was offered the disputed land by the colonial government in 1927 in exchange for property that is the present-day Kariokor area.

The Jockey Club adds that its ownership came before the land was proclaimed as forest in 1932. It argues that the agreement with the colonial government overrides any subsequent declaration.
The interest of Actis in the disputed land began in year 2000 after Jockey Club obtained approvals from the Commissioner of Lands to subdivide the property and change its user to allow half of it to be occupied by shops, offices and residential units.

This paved the way for construction of the first phase of the Nairobi Business Park, where the Jockey Club was offered a minority stake in exchange for the land.

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