Kenya : Tatu City Stakeholders Head For Fresh Court Battle
Development of Tatu City could be further delayed as a result of a new round of shareholder infighting over management and funding issues.
In an application lodged with Kenya's High Court two local directors, Nahashon Nyagah and Vimal Bhimji, claim that their foreign counterparts are acting against the best interests of the development by seeking to gain control of the holding companies “so that they can continue pilfering the capital, income and assets” held by Tatu City Ltd and the company that owns the land, Kofinaf.
Nahashon Nyagah is a former governor of the Central Bank of Kenya. He resigned in 2003 following the collapse of the Euro Bank and the loss of millions in government pension funds.
Nyagah claims that he was recently fired as Tatu City's chairman of the board and director. Pius Mbugua Ngugi, a well known Kenyan businessman, has been appointed in his place.
Nyagah is quoted in Kenya's Daily Nation as saying that “there is real danger that such actions will leave the company exposed because the properties of Tatu City Ltd and Kofinaf Company Ltd would have been sold, the proceeds siphoned out of the country and beyond reach because they are not Kenyan nationals and cannot be readily available to account should the project stall or fall.”
In 2010 two minority shareholders held up the development for approximately two years after they sought assistance from the Courts to dissolve the Tatu City company, claiming that minority shareholders were being sidelined.
The case will be heard by the High Court on 27 February 2015. It is unclear at this time whether the process will result in delays in East Africa's most prestigious development.