By Andrew Kariuki

Owners of Nairobi’s well known 14 Riverside Drive commercial complex have secured temporary relief after the High Court suspended a planned auction of the property that had been scheduled for May 26, 2026.

The court intervened to pause the sale, allowing parties time to argue concerns raised over the legality and conduct of the auction process before any disposal of the multi-billion shilling property can proceed.

The latest orders offer a reprieve to Cape Holdings, which has been locked in a prolonged legal dispute surrounding the development for over a decade.

Following the ruling, the company welcomed the decision, describing it as an important milestone in a legal fight it says has dragged on for years.

“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,” Cape Holdings said after the decision.

As part of the court directions, Moran Auctioneers was ordered to file and respond to submissions within seven days, with the matter scheduled for mention and further directions on June 2, 2026.

The decision comes only days after the Court of Appeal declined to issue interim orders stopping the auction, instead setting November 27, 2026, for a ruling on an injunction application connected to the dispute.

At the centre of the case is a long-running commercial disagreement between Cape Holdings and Synergy Industrial Credit Limited linked to a property transaction dating back to 2010 involving office space within the Riverside development.

Court filings indicate that the dispute revolves around approximately Ksh577 million paid as a deposit towards the purchase of part of the development. The deal later collapsed after disagreements emerged, with Synergy reportedly seeking reimbursement over alleged delays, while Cape Holdings has maintained that project timelines were affected by design alterations requested by the buyer.

Over time, the financial dispute is said to have escalated significantly, with the amount in contention reportedly rising to more than Ksh10 billion.

For now, the High Court’s intervention means the planned auction will remain on hold as judges consider arguments challenging the auction process and parties continue litigating one of Nairobi’s longest-running commercial property disputes.