NAIROBI, Kenya — A prime commercial property in Nairobi’s upscale Riverside area is set for auction after the Supreme Court of Kenya declined to intervene in a long-running legal dispute, effectively bringing the matter to a close.
The ruling clears the way for the sale of the property known as L.R. No. 209/19436, part of the 14 Riverside complex that houses key commercial developments, including the DusitD2 hotel.
In its decision, the apex court upheld earlier findings by the Court of Appeal of Kenya, stating that it lacked jurisdiction to hear the matter and that the dispute had already been conclusively determined.
“Accordingly… the Motion is hereby dismissed,” the judges ruled, reaffirming the principle that arbitration-related disputes should ordinarily end at the Court of Appeal.
The case stems from a failed commercial transaction involving Cape Holdings and Synergy Industrial Credit.
Synergy had paid a substantial sum for a stake in the property before the deal collapsed, triggering arbitration proceedings.
In 2015, an arbitrator awarded Synergy about Sh1.6 billion plus interest at 18 per cent annually.
However, Cape Holdings challenged the award, setting off a protracted legal battle spanning nearly a decade.
The High Court initially set aside the arbitral award in 2016, but the Court of Appeal overturned that decision in 2020, ruling that the lower court had exceeded its mandate by delving into the merits of the dispute instead of limiting itself to procedural grounds under the Arbitration Act.
Cape Holdings made a final attempt to escalate the matter to the Supreme Court, arguing that the case raised issues of general public importance, including constitutional questions and the application of foreign legal principles.
However, the apex court rejected that argument, reiterating its long-standing position on the finality of arbitration.
It emphasised that once the Court of Appeal determines such disputes, further appeals should only arise in exceptional circumstances.
The ruling now paves the way for creditors to proceed with the auction of the high-value property as part of efforts to recover the outstanding debt.
Legal analysts say the decision reinforces Kenya’s arbitration framework by strengthening the principle of finality in commercial disputes—an outcome seen as critical for investor confidence.
Under the Arbitration Act, courts are generally required to limit interference in arbitral awards, allowing parties to resolve disputes efficiently outside prolonged litigation.
