Over 100 homeowners at Great Wall Gardens in Athi River face the risk of losing their units after the developer failed to convince the Court of Appeal to temporarily halt Kenya Commercial Bank (KCB) from auctioning the houses to recover a loan of KSh1.9 billion.
Erdemann Property Limited, the developer, pleaded with the court that the homeowners were innocent purchasers and that the units were sold by mistake.
However, a bench of three judges, comprising Justices Steven Gatembu Kairu, Jessie Lesiit, and Grace Ngenye Macharia, dismissed these pleas. They ruled that there was no indication that the lender would be unable to compensate the property developer.
The court was informed that the property in Athi River was charged to KCB, but they sold it to innocent third parties who have already occupied the houses.
