NAIROBI, Kenya, June 17 – The Court of Appeal has ordered property developer Erdemann Property Limited to secure a Sh23 million bank guarantee after suspending orders requiring it to demolish structures erected on land belonging to Ngara Girls High School.
In a ruling, the appellate court stayed the execution of an earlier judgment by the Environment and Land Court (ELC), which had directed the company to vacate the land, demolish all structures within 60 days and restore the property to its original condition.
The ELC had also ordered Erdemann to pay Ngara Girls High School Sh23 million in damages for trespass and violation of the school’s constitutional rights, with interest accruing until the land is returned to the institution.
Court documents show that the school had leased the land to the developer for three years to temporarily store building materials during the construction of the River Estate Project.
The lease expired on June 10, 2023, but the school claimed the company continued occupying the land and operating a concrete batching plant, activities it said disrupted learning.
Erdemann, however, argued that its operations were being conducted on a different parcel not owned by the school and maintained that all its activities were duly licensed.
The company further contended that the dispute over alleged trespass and environmental degradation should have been resolved through ordinary legal mechanisms rather than a constitutional petition.
In seeking a stay of execution, Erdemann argued that implementing the ELC orders before the appeal is heard would render its appeal nugatory, noting that demolition of the structures would be irreversible and recovery of the Sh23 million damages difficult even if it eventually succeeded on appeal.
The Court of Appeal found that the company had raised arguable grounds deserving consideration, including whether it had trespassed on the school’s land and whether the ELC properly exercised its constitutional jurisdiction in issuing the orders.
The judges nonetheless directed Erdemann to provide a Sh23 million bank guarantee within 45 days as security pending the determination of the appeal.
The court also ordered the company to cease operations of the cement batching plant on the disputed property while the appeal is pending.
