Synergy Industrial Credit and its lawyer, senior counsel Ahmednasir Abdullahi, have been accused of attempting a forcible takeover of a prime Nairobi property in Nairobi, 14 Riverside, which has been embroiled in a legal dispute for over a decade.
The property’s developer, Cape Holdings Limited, condemned the actions of Synergy and its lawyer for interfering with the management of the luxury office and hotel complex. Synergy is demanding Ksh 5.4 billion from Cape Holdings, following a collapsed 2011 deal to purchase one block of the complex. Cape Holdings, currently under administration, claims that Synergy and its lawyer have illegally trespassed and initiated actions to take over the property without court orders, while several applications are still pending in court.
The developer has filed a notice of motion seeking urgent court intervention to prevent what it calls a serious abuse of the court process. Synergy, however, disputes these accusations, stating that the Court of Appeal has already ruled against Cape Holdings and that the company’s ownership rights over the property have been extinguished. According to Synergy’s Jacob Mbae Meme, the only remaining step is the execution of the decree.
Cape Holdings has also accused Synergy and its lawyer of violating the sub judice rule by making derogatory comments on social media while legal matters are still pending. The developer fears that these remarks could influence the court’s decision and deter tenants and future buyers from the property.
The dispute traces back to a 2010 agreement in which Synergy was to purchase one office block for Ksh 703 million, making an initial payment of Ksh 577 million. However, Synergy sought to terminate the deal in 2011, demanding a refund, and the issue went to arbitration. Cape Holdings later offered Ksh 750 million to settle, but Synergy rejected it. The arbitrator eventually awarded Synergy Ksh 1.66 billion, a decision that Cape Holdings challenged in the High Court. The award was overturned in 2016, but Synergy appealed, and by 2023, the award had increased to KSH 5.4 billion.
Cape Holdings maintains that Synergy’s interest is limited to only one of the five blocks and that it cannot sell the entire property to recover its money. The property developer is also under administration after defaulting on loans from I&M Bank. In the meantime, Abdullahi has written to tenants at 14 Riverside, instructing them to pay rent to Synergy, claiming there has been a change in ownership and management. The notice of motion is scheduled for hearing on October 2.”
