Court Allows Sh2.4bn Lifestyle Heights Project at Tatu City

The construction of 652 apartments by Home Bridge at Tatu City, near Ruiru in Kiambu County, is set to proceed after the Court of Appeal ruled in favour of the developer. 

The judges determined that halting construction would cause more harm to Home Bridge than to Tatu City, which sought to block the project, allowing the 20-acre Lifestyle Heights phase II project to move forward. 

Home Bridge had completed and sold all units in the 10-acre phase I of the project, and the new development, valued at over Sh2.4 billion, is critical to the company, which borrowed substantial funds to finance the project. 

The court highlighted that stopping the construction would potentially make the project financially unviable. The judges further noted that Tatu City had approved an identical project, Lifestyle Heights phase I, and thus could not oppose phase II. 

“A number of uncontested factors have persuaded us that the appeal by Tatu City will not be rendered nugatory, key being that it had previously approved an identical construction by Home Bridge,” the court stated. 

The dispute arose when Tatu City demanded Sh47 million for building approvals for phase II. In response, Home Bridge sought approval from Kiambu County, reducing the cost to Sh7 million, leading Tatu City to sue.

The dispute began when Tatu City started demanding Sh47 million as approval fees for buildings for phase II. Home Bridge sought approval from Kiambu County and the Ministry of Lands, which charged a lower fee of Sh7 million. 

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This prompted Tatu City to file a suit claiming it was superior in terms of issuing approvals due to its special economic zone status. 

However, the Court of Appeal found that the objections by Tatu City were unfounded, since there was no evidence showing that irreparable harm would result from continuing with the development.

This, in turn, highlights the often-complex relationship between private developers and such special zones as Tatu City. 

The outcome of this legal battle thus probably was expected to influence the shape of future development policy for controlled areas. 

With the final ruling in its favour, Home Bridge is cleared to begin phase II, part of a growing solution to meet Kenya’s housing demand.

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