A former lawmaker stands to lose Ksh646 million after he was barred from utilising the building in Nairobi CBD due to rent arrears.
A report by Business Daily on Thursday, January 14, indicated that former Wajir MP Arale Hassan lost a bid at the High Court to engage Wakulima House as a commercial centre.
Hassan was seeking to enforce an agreement he had made when he leased the building in 2015 arguing that his lease had been extended in 2018.
He also noted that he had already secured funding amounting to Ksh646 million to transform the 187,000 square meters space into a business center.
Hassan also explained that various investors had injected up to Ksh250 million into the project with the aim of building a premier business hub.
Hassan argued that he had secured the space for 25 years and accused the current management of breaching the agreement.
The management, on the other hand, disputed the former lawmaker's claim noting that there were no minutes to prove that he had secured the building's lease.
They further claimed that he had not received the consent to transform the building and that the former lawmaker had defaulted on settling rent arrears although he had sublet the property to other people.
The management further showed that Hassan had accumulated Ksh90 million in arrears from the time he signed the lease.
In the ruling, the court dismissed Hassan's claim explaining that he had failed to justify why the management should be stopped from cancelling the lease.
"The facts before me do not satisfy the tests for granting a mandatory injunction. Similarly, the applicant has not demonstrated a prima facie case with a likelihood of success," ruled Justice John Mativo.
