Nairobi, Kenya – February 27, 2025 – A high-stakes legal battle over a controversial real estate development in Parklands has taken a dramatic turn, as the Environment and Land Court (ELC) has ruled against halting the ongoing proceedings regarding the disputed construction project on L.R. No. 209/20729, City Park Drive. The ruling, delivered by Justice AA Omollo, rejected an application by petitioners seeking to stay proceedings pending an appeal, marking a significant moment in Nairobi’s real estate landscape.
The Dispute at the Heart of the Case
The case, Kassam & 12 Others v Exotic Real Estate Limited & 12 Others, revolves around a group of residents challenging the legality of a multi-residential apartment project in the Parklands area. The petitioners, led by Karim Sherali Kassam, argue that the developers—Exotic Real Estate Limited—have flouted environmental regulations and proceeded without obtaining necessary approvals from the National Environmental Management Authority (NEMA).
According to court documents, the petitioners initially sought conservatory orders to limit construction activities on the site, citing concerns over noise pollution, dust management, and the broader environmental impact. On August 15, 2024, the court granted partial relief by directing the developers to install dust covers and restrict construction hours. However, dissatisfied with the ruling, the petitioners escalated the matter to the Court of Appeal, filing Civil Appeal No. E668 of 2024 in an effort to halt the entire project.
In their latest legal maneuver, the petitioners requested a stay of proceedings while the appeal was being heard. However, the court ruled against this request, emphasizing that the petitioners had failed to meet the legal threshold required for such an order. Justice Omollo cited Kenya Wildlife Service v James Mutembei (2019) eKLR, noting that a stay of proceedings is an extreme measure that should only be granted in exceptional circumstances.
The ruling also pointed out that the petitioners had other legal avenues to seek interim relief, such as moving the Court of Appeal directly. The judge warned against using procedural delays to stall litigation, reinforcing that the case should proceed without further obstruction.
Developers Defend Project Compliance
Exotic Real Estate Limited and its co-respondents, including key investors and project stakeholders, have defended the legality of the development. They argue that the project holds valid approvals, including an environmental impact assessment license and excavation permits. The developers also dismissed claims that construction was ongoing in violation of the court’s orders, asserting that activities on-site were limited to securing the property against vandalism.
However, the Nairobi County Government and NEMA have complicated matters for the developers by confirming that an enforcement notice was issued against the project. The county alleges that the developers failed to meet critical compliance requirements, including the display of a signboard detailing project approvals and ownership.
The case underscores growing tensions between real estate development and environmental conservation in Nairobi’s rapidly urbanizing zones. Parklands, a prime residential and commercial area, has seen a surge in high-rise developments, leading to concerns over strained infrastructure, environmental degradation, and community displacement.
For now, the developers have been given the green light to proceed with certain aspects of the project, but pending appeals and regulatory scrutiny could further impact the timeline. With the Court of Appeal set to weigh in, the dispute remains far from over.
What This Means for Real Estate Investors and Buyers
The ruling is a critical reminder for property investors, developers, and homebuyers to conduct thorough due diligence before engaging in real estate transactions. Compliance with zoning laws, environmental regulations, and local government approvals is paramount to avoid costly legal battles that can delay or halt projects altogether.
As Nairobi continues to evolve, the outcome of this case could set a precedent for future real estate developments, reinforcing the need for responsible urban planning that balances growth with environmental sustainability.
For prospective homeowners and investors, staying informed about new developments’ legal and environmental aspects is crucial. As this case demonstrates, overlooking regulatory requirements can lead to protracted disputes that jeopardize project viability and investment returns.
Stay tuned for further updates as the legal battle unfolds in the Court of Appeal.
Court Halts Controversial Parklands Apartment Project Amid Environmental Concerns
Nairobi, Kenya – February 27, 2025 – A high-stakes legal battle over a controversial real estate development in Parklands has taken a dramatic turn, as the Environment and Land Court (ELC) has ruled against halting the ongoing proceedings regarding the disputed construction project on L.R. No. 209/20729, City Park Drive. The ruling, delivered by Justice AA Omollo, rejected an application by petitioners seeking to stay proceedings pending an appeal, marking a significant moment in Nairobi’s real estate landscape.
The Dispute at the Heart of the Case
The case, Kassam & 12 Others v Exotic Real Estate Limited & 12 Others, revolves around a group of residents challenging the legality of a multi-residential apartment project in the Parklands area. The petitioners, led by Karim Sherali Kassam, argue that the developers—Exotic Real Estate Limited—have flouted environmental regulations and proceeded without obtaining necessary approvals from the National Environmental Management Authority (NEMA).
According to court documents, the petitioners initially sought conservatory orders to limit construction activities on the site, citing concerns over noise pollution, dust management, and the broader environmental impact. On August 15, 2024, the court granted partial relief by directing the developers to install dust covers and restrict construction hours. However, dissatisfied with the ruling, the petitioners escalated the matter to the Court of Appeal, filing Civil Appeal No. E668 of 2024 in an effort to halt the entire project.
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Court Rejects Application for Stay of Proceedings
In their latest legal maneuver, the petitioners requested a stay of proceedings while the appeal was being heard. However, the court ruled against this request, emphasizing that the petitioners had failed to meet the legal threshold required for such an order. Justice Omollo cited Kenya Wildlife Service v James Mutembei (2019) eKLR, noting that a stay of proceedings is an extreme measure that should only be granted in exceptional circumstances.
The ruling also pointed out that the petitioners had other legal avenues to seek interim relief, such as moving the Court of Appeal directly. The judge warned against using procedural delays to stall litigation, reinforcing that the case should proceed without further obstruction.
Developers Defend Project Compliance
Exotic Real Estate Limited and its co-respondents, including key investors and project stakeholders, have defended the legality of the development. They argue that the project holds valid approvals, including an environmental impact assessment license and excavation permits. The developers also dismissed claims that construction was ongoing in violation of the court’s orders, asserting that activities on-site were limited to securing the property against vandalism.
However, the Nairobi County Government and NEMA have complicated matters for the developers by confirming that an enforcement notice was issued against the project. The county alleges that the developers failed to meet critical compliance requirements, including the display of a signboard detailing project approvals and ownership.
You can Also Read: Why Ravi Homes is the Best Real Estate Company in Kenya (2025)
Environmental Concerns and Future Implications
The case underscores growing tensions between real estate development and environmental conservation in Nairobi’s rapidly urbanizing zones. Parklands, a prime residential and commercial area, has seen a surge in high-rise developments, leading to concerns over strained infrastructure, environmental degradation, and community displacement.
For now, the developers have been given the green light to proceed with certain aspects of the project, but pending appeals and regulatory scrutiny could further impact the timeline. With the Court of Appeal set to weigh in, the dispute remains far from over.
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What This Means for Real Estate Investors and Buyers
The ruling is a critical reminder for property investors, developers, and homebuyers to conduct thorough due diligence before engaging in real estate transactions. Compliance with zoning laws, environmental regulations, and local government approvals is paramount to avoid costly legal battles that can delay or halt projects altogether.
As Nairobi continues to evolve, the outcome of this case could set a precedent for future real estate developments, reinforcing the need for responsible urban planning that balances growth with environmental sustainability.
For prospective homeowners and investors, staying informed about new developments’ legal and environmental aspects is crucial. As this case demonstrates, overlooking regulatory requirements can lead to protracted disputes that jeopardize project viability and investment returns.
Stay tuned for further updates as the legal battle unfolds in the Court of Appeal.
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