Kenyan Real Estate Firm's Sh2 Billion Assets in Jeopardy as Directors Clash

The legal dispute between the directors of Kiambu-based real estate firm Willstone Homes Limited has escalated as the struggle for control over the company's bank accounts intensifies.

At the heart of the conflict is Sh839 million held in accounts at Stanbic Bank, part of the company's substantial Sh2 billion asset portfolio. The case, currently before the Milimani High Court's Commercial and Tax Division in Nairobi, pits Mr. Ejidio Kinyajui against his co-director, Mr. Victor Cosmus Muusya. Mr. Kinyajui contends that Mr. Muusya has improperly removed him as a signatory to the firm's bank accounts, a move he argues threatens both the company's financial stability and the timely completion of ongoing housing projects.

Court documents reveal the complex ownership structure of Willstone Homes. Mr. Kinyajui, a minority shareholder with a 20% stake, previously managed Banda Homes before its collapse. The majority 80% stake is held by Diamond Transfer Limited, an investment vehicle controlled by Mr. Muusya and Mr. Patrick Thuo Marigi. Mr. Kinyajui, who co-founded Willstone Homes with the aim of providing affordable housing, asserts that his exclusion from the company's accounts has created conflicts with homebuyers due to project delays.

In response, Mr. Muusya has filed a counter-affidavit accusing Mr. Kinyajui and Mr. Thuo of engaging in conflict of interest, money laundering, and tax evasion. He alleges that these actions threaten the company's survival and reveal ongoing investigations by tax authorities and the Directorate of Criminal Investigations. Mr. Muusya, who owns a 50% stake through Capital Mabati Limited, claims he has been sidelined from the company's decision-making process for two years and has even faced physical assault at the firm's premises.

The gravity of the situation is underscored by Mr. Muusya's warning that without proper intervention, Willstone Homes may face a fate similar to other collapsed real estate companies like Gakuyo Real Estate and Suraya Properties Group. In a recent ruling, Justice J. W. W. Mong'are granted Mr. Kinyajui temporary reinstatement as a signatory to the company's bank accounts, pending the main hearing scheduled for October 14. While this decision provides a short-term solution, the fundamental issues plaguing the company remain unresolved.

The case has garnered significant attention due to its potential implications for the real estate sector. Willstone Homes, established in 2018, has been a notable player in the market, particularly known for its off-plan housing projects. The company's vision of providing affordable, high-quality housing has resonated with many Kenyans, both domestically and in the diaspora.