NAIROBI, Kenya – The High Court has nullified the proposed auction of 14 Riverside Drive over a Sh577 million dispute, declaring the sale process defective and directing that it be restarted in strict compliance with the law.
The ruling was delivered in favour of Cape Holdings Ltd, the registered owner of the property, which had challenged the auction organised by Synergy Credit and Moran Auctioneers.
After considering submissions from both sides, the court identified four defects in the execution documents issued on March 16, 2026.
These included failure to set a reserve price, failure to disclose encumbrances registered against the property, failure to issue fresh terms of sale after earlier warrants had been set aside and failure to prepare and serve a Form 4 Notification of Sale on all interested parties.
The court subsequently set aside the warrants of sale, notification of sale, auctioneer’s notice and advertisement.
Fresh Valuation Ordered
The court directed that any fresh auction must be preceded by an updated professional valuation of the property.
The Deputy Registrar will then settle the terms of sale and determine a reserve price after notifying both parties.
The process is intended to ensure that the property cannot be sold below the minimum value approved by the court.
Fresh sale documents must disclose the reserve price and all registered encumbrances, while the auctioneer will be required to comply fully with the Auctioneers Rules.
Court Rejects Jurisdiction Challenge
The court also dismissed a preliminary objection by Synergy Credit challenging its jurisdiction to hear Cape Holdings’ application.
“Section 34 of the Civil Procedure Act mandates that all questions relating to execution, discharge or satisfaction of decree shall be determined by the court executing the decree,” the judge stated.
The court further rejected allegations by Synergy Credit of collusion between the court and Cape Holdings’ lawyers.
The judge found that “no affidavit supports these allegations” and that “the facts support no such inference”.
The court consequently ordered that the paragraphs containing the allegations be expunged from the court record.
Cape Holdings Welcomes Ruling
Cape Holdings welcomed the decision, saying it reaffirmed the requirement for auction processes to comply with the law.
“We welcome the Court’s decisive ruling. The Court has confirmed that no sale can proceed outside the law,” the company said.
The company added that it remained committed to defending its legal rights and pursuing a fair and lawful resolution.
Synergy Credit has indicated that it will appeal the decision.
