This archive report was first published on 25 May 2020.
On May 25, 2020, the Environment and Land Court in Machakos dealt a blow to Housing Finance Company (HF) in a Sh350 million loan dispute.
HF had sought to auction 76 maisonettes in Mavoko, Machakos, after Capital Realty Limited, the developer, defaulted on the loan.
However, Justice Oscar Angote dismissed HF's preliminary objection, ruling that the dispute was not purely commercial but also involved the title of the land.
According to the court, the transactions between the homebuyers and Capital Realty Ltd never received HF's approval, and the proceeds from the sale price were never deposited in the escrow account as agreed.
The homebuyers, who claim to own the houses, are demanding a refund and damages of Sh146.7 million.
Justice Angote's ruling means that the auction of the 76 maisonettes will proceed, with the homebuyers facing the possibility of losing their homes.
