Telkom Kenya has initiated a constitutional petition to block Postel Housing Co-operative Society's private prosecution against former directors over alleged unauthorized land dealings, reigniting a 28-year legal battle involving a 79-acre Ngong Road property in Nairobi.
The dispute originated in January 1993 when the defunct Kenya Posts and Telecommunications Corporation (KPTC) sold 60 acres of the land to Postel for KSh 21 million. A subsequent agreement with Exclusive Estates Limited for housing development was halted by KPTC in 1995, leaving the transaction incomplete and sparking legal challenges.
In 2001, Exclusive Estates sued Telkom and Postel over the development agreement, seeking injunctive relief and property transfer. The case was dismissed but led to appeals. A 2009 agreement transferred Postel's rights to Exclusive Estates for KSh 50 million, which Telkom contested through arbitration in 2011.
A 2013 court order referred the dispute to arbitration, while a 2012 judicial review ruling favored Exclusive Estates. The Court of Appeal upheld this in March 2016, invalidating Telkom's 2011 sale to Aftraco Limited for KSh 1.52 billion. An arbitration award in 2019 ordered Telkom to transfer 60 acres to Exclusive Estates, but the decision was annulled in April 2021.
Postel now alleges fraudulent land dealings, prompting private prosecution against Telkom's former directors. The case remains unresolved, reflecting decades of contested land ownership and corporate transitions in Kenya's telecommunications sector.
