The High Court has mandated two companies involved in a Sh460 million land dispute to create a joint Sh46 million account, prohibiting any transactions on the 2,000-acre Taita Taveta property until the case concludes. The Environment and Land Court in Mombasa also barred Image Font Ltd from seeking a refund of Sh69 million paid as a deposit to Izera Entreprises Ltd after their purchase agreement collapsed.
Justice Lucas Naikuni ordered Izera to deposit Sh46 million into an interest-bearing escrow account managed by legal representatives of both parties. The court emphasized the account must be held at a first-tier bank under Kenya's Banking Act and Regulations. The dispute originated from a February 11 land sale agreement where Image Font paid a 15% deposit of Sh69 million—exceeding the statutory 10%—for the property.
Izera alleges Image Font developed the land by constructing boreholes, roads, and fences, while Image Font denies occupation, claiming Izera was the occupant. The companies also clash over the agreement's validity. Image Font questioned the transaction's legality in a June 2 letter, citing unreported lawsuits and an expired 2017 lease. Izera countered that a 2010 court ruling cleared the property of legal issues and that Image Font lacked Land Control Board approval, rendering the contract void.
Image Font filed a counterclaim for deposit reimbursement, arguing the sale violated legal standards. The court's order prevents either party from unilaterally disposing of the land or demanding refunds until the case is resolved.
