Conclusion of Court Case Signals New Dawn for Tatu City
The Judge also held that the minority shareholders had filed the petitions as an extortion scheme intended to force the Company to buy their shareholding at valuations dictated by the minority shareholders.
Construction of Tatu City, a multi-million dollar satellite city planned on the outskirts of Nairobi is now on full steam following the conclusion of a winding up petition that has held back the development for two years. On Friday, Commercial Court Judge Justice Daniel Musinga, refused to allow the petitions filed by Tatu City's minority shareholders to have the Company wound up or they be bought out by the majority shareholders.
In his ruling, Justice Musinga agreed with the Company that the minority shareholders had acted unreasonably in petitioning the Court to wind up the Company when there was an alternative remedy available to them, through sale of their shareholding to the other shareholders. The Judge also held that the minority shareholders had filed the petitions as an extortion scheme intended to force the Company to buy their shareholding at valuations dictated by the minority shareholders. He ruled that they held only one (1) share each in the Company which should be valued and paid for by the Company.
We are grateful that the High Court has finally heard and determined the winding up petitions. We are even more grateful that justice has been served and this ruling will assist in restoring investors' confidence in the judicial system in Kenya. With the winding up petition behind us, we can now go full steam with the development of Tatu City, which will change the face of urban development in Kenya" said Arnold Meyer, the acting CEO for Tatu City. Mr Meyer added that Tatu City looks forward to partnering with local developers who will profit from involvement in building the city and therefore expand the opportunity in the local real estate development industry.
Tatu City covers over 1,000 hectares and will comprise over 22,000 residential units and approximately 2 million square metres of office, retail, light industrial spaces as well as community facilities including , public service transport interchanges, health facilities and recreational parks. The director general of Vision 2030 Delivery Secretariat, Mugo Kibati said that as one of the flagship projects of Vision 2030, Tatu City is poised to make a significant contribution to Kenya's renewed growth in economic and social development.
It a holistic urbanization model that is cognizant of the social and economic pillars of Vision 2030, and its commencement is good news for the country as it will contribute towards sustainable development. Tatu City will also reposition Kenya's property development and housing landscape making it a reference point for other African countries" added Mr. Kibati.
Already, Tatu City has received the requisite environmental and statutory approvals. With the conclusion of the court case, the actual construction work is set to move with speed including the installation of services for the city along with the road finishes, pavements and landscaping. The main bulk service installations such as the power switching station and treatment plants will also commence.