Equity Wins Suit to Stop Gatabaki’s Sh300m Land Payout.

A Kenyan court has overturned a KSh300 million compensation award to the family of the late Samuel Gatabaki, a Kiambu tycoon, folowing Equity Bank’s successful argument that it has a stake in the disputed land.

The payout was originally awarded to the Gatabaki family after the Kenya Urban Roads Authority (KURA) was found guilty of trespassing on their land to construct the Northern Bypass without compulsory acquisition or compensation.

Equity Bank, however, contended that a portion of the land used in the compensation claim was no longer valid due to fraudulent amalgamations undertaken without its knowledge, as the bank holds a legal charge over the property.

Justice Oguttu Mboya of the Environment and Land Court determined that Equity Bank had established a compelling case for reevaluating the previous judgment, citing errors and omissions that had a
detrimental effect on the lender’s interests.

The Gatabakis were ordered by the court to amend their petition to include Equity Bank as a respondent, which will facilitate additional legal proceedings. The judge recognized the necessity of conducting a more thorough examination of the issues related to the land’s amalgamation and ownership, which included allegations of fraud involving surveyors and third parties.

The bank’s involvement was opposed by the Gatabakis, who contended that Equity had not conducted sufficient due diligence prior to claiming its stake.