Court suspends planned auction of 14 Riverside

The court issued a stay of auction to allow parties to argue issues raised over alleged defects in the auction process, temporarily halting the sale of the multi-billion-shilling commercial complex.

Speaking after the orders were granted, Cape Holdings welcomed the decision, saying the ruling marked a major step in the long-running legal battle.

“We are pleased that the court has agreed to grant a stay of auction. This is a significant step in achieving justice for what we have suffered these past 15 years. The road ahead is still long and we intend to continue fighting for our rights and for a fair resolution to this dispute which has gone on for too long,” the company said.

The court further directed Moran Auctioneers to file and respond to the submissions within seven days, with the matter scheduled for directions on June 2.

The fresh orders come days after the Court of Appeal of Kenya declined to issue interim orders stopping the auction and instead set November 27, 2026, as the date for its ruling on an injunction application.

The dispute stems from a long-running commercial battle between Synergy Industrial Credit Limited and Cape Holdings over a 2010 property transaction tied to the Riverside development.

At the centre of the dispute is a deposit of about KSh577 million paid towards the purchase of an office block within the complex. The deal later collapsed, with Synergy seeking a refund over alleged delays in the project, while Cape Holdings maintained the delays were occasioned by design changes requested by the buyer.

The debt arising from the dispute is said to have grown to more than KSh10 billion, with the High Court’s latest intervention offering temporary relief as parties prepare to argue the legality of the auction process.