Suraya Investors Risk Losing More Millions
Kevin Namunwa  |  Aug 18, 2020

Almost two years ago, Kenyans got to see the ugly side of off-plan investments as investors lost millions they had injected into a Suraya Property Group’s project.

Today, the same buyers who lost millions are at a risk of losing more money after the High Court allowed Transnational Bank to auction a one-acre parcel of land on Kiambu Road that was to host the houses.

Investors had already paid for the houses which were to be set up and now have the piece of land as the only return to their investments.

Justice David Majanja dismissed the application by 14 investors who sought to block Transnational Bank from selling the land over a Ksh 111.2 million.

The Judge said they failed to provide sale agreements between them and the developer- Suraya property Group, to help the court determine the nature of the proprietary interests in the property.

He further said that the bank had charged the property and its interest supersedes any other interest including the rights of the investors.

“In the absence of these agreements, which form the basis of the contractual relationship, I cannot say the Plaintiffs have established a prima facie case with a probability of success in relation to the registered interest of Transnational Bank,” he said.

The investors who took the bank to court learned of the transaction after seeing the bank advertising the piece of land for sale. They had entered a deal with Muga Developers and Suraya for purchase of apartments.

Suraya had promised to build a multi-storeyed block of apartments including 84 two-bedroomed and68 three-bedroomed apartments. The construction would also include two basement parking.

The investors sought to stop the bank from selling the property to recover a loan of Sh111 million.