The Kenyan Supreme Court has ruled against Westmont Holdings' attempt to escalate a 1997 property dispute involving Sh185.5 million, stating the case lacks sufficient public interest to warrant its intervention in 2021.
The conflict originated when Malaysia-based Lynwood Development Limited, through its local agent Westmont, paid the Central Bank of Kenya (CBK) a 10% deposit of Sh185.5 million in April 1997 for the Grand Regency Hotel. The property was later sold to Libya Arab Investment Company (Laico) in 2008 and renamed Laico Regency, prompting Lynwood to seek reimbursement of the deposit plus interest.
Westmont argued the CBK's requirement to deposit Sh20 million before pursuing its multi-billion shilling claim was an unreasonable barrier to justice. However, the court found no legal basis for intervention, emphasizing the matter involved private contractual disputes rather than public policy concerns.
The case is tied to the 1990s Goldenberg scandal, which implicated Kamlesh Pattni, a businessman linked to the hotel's initial acquisition. The CBK alleges Pattni used the payment to settle personal debts rather than as a legitimate deposit for the hotel purchase.
Lynwood initially filed a lawsuit in 1998 but abandoned it after years of delays linked to Goldenberg investigations and a personal accident involving its representative. The company refiled in 2008, claiming the CBK failed to secure optimal value for the hotel, a claim supported by a 1994 auction that reportedly attracted a $60 million bid.
