Kenya: fight for high-value Eastleigh mall gets complicated

A legal dispute between two business partners over the management of a 270 million shillings commercial building in Eastleigh, Nairobi, has been referred to the judiciary’s mediation unit.

The owners of the five-story Hong Kong mall, Yusuf Abdi Adan and Mahammed Abdikadir Adan, also accuse each other of using militias to protect their interests.

They jointly acquired the property in 2003. It has approximately 197 stores, which bring in a monthly rental income of 2.4 million shillings.

But in May of this year, Mr. Abdi sued Mr. Adan, accusing him of conspiracy to evict him from the property in an attempt to frustrate his condominium.

He asked for a statement that as a co-owner he has the legal right to keep the property and access all parts of it and participate in collecting rent from current and future tenants.

He also sought a permanent order prohibiting Mr. Adan from harassing tenants.

But Judge Bernard Eboso noted that the dispute called for mediation. He said that although the parties agreed to equal shares of rental income, there was mutual mistrust and hostility.

Pending the outcome of mediation, Judge Eboso ordered that the status quo be maintained, where Mr. Abdi will continue to manage the property on the condition that he is accountable to Mr. Adan and remits 50 percent of the rental income to him. net on the 10th day of each month.

The two, along with others (Hussein Ahmed Farah and Hussein Unshur), are also co-owners of another property known as Bangkok Shopping Mall, also in Eastleigh. The management methods of the Bangkok Mall are similar to those of the Hong Kong Mall.

Mr Abdi claimed that in May this year Mr Adan, in cahoots with the other Bangkok Mall co-owners, had conspired and kicked him out of the Bangkok Mall and was harassing the tenants of the building to sign. new rental contracts, all with the presumed aim of frustrating him from collecting the rent.

He added that Mr. Adan and other co-owners had since kept him away from the Bangkok Mall by using a militia, who they asked to deny him entry to the building.

Mr. Adan, for his part, urged the court to order him and Mr. Abdi, either by themselves or through a designated director, to jointly take possession, control, management, including the collection of the monthly rent and the goodwill of the Hong Kong Mall pending the decision of the case. .

He claimed Mr Abdi had been the sole manager of the property since 2016, but had not been accountable since.

Mr Adan added that he did not intend to dispossess Mr Abdi of the property, but was only seeking to manage, control, own and share the proceeds equally in equal proportions.

Mr Adan said it was Mr Abdi who locked him out with the help of a militia.

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Peggy P. Gilmore