The company requests the liquidation of Myspace Properties


One of the houses built by MySpace Properties in Nyali Estate in Mombasa in 2015. [Omondi Onyango, Standard]

A contractor – Teams Construction – filed an insolvency petition against Myspace Properties for a debt of 110.7 million shillings.

The teams said the amount owed, calculated through September 15, 2021, was the balance of the contractor’s fees, interest and construction services rendered to the company.

Myspace, founded by Mr. Mwenda Thuranira, hired the firm in November 2012 to build One Twiga Apartments off Links Road in Mombasa.

“Upon completion and handover of the project, in violation of its obligations under the contract, the company failed to pay the claimant the balance of the construction costs due,” Team Construction said in a motion by the through its attorneys, Shapley Barret and Company Advocates.

They pursued arbitration and Judge E. Togbor (retired) was appointed arbitrator.

After the arbitration, the parties reached a consent to the arbitration award on September 4, 2014, which was adopted by the Court on December 15, 2015. However, Team Construction stated that despite repeated legal actions by the claimant, including including attempted enforcement and constant reminders, the company has to date not honored the decree.

“The petitioner has failed to trace the seizable assets belonging to the company and all attempts at enforcement have been thwarted by the company, including hiring ‘morons’ and using rogue Kenya Police officers to prevent the same,” says the construction company. .

In the petition, Team Construction claims the auctioned vehicles “disappeared” after Myspace Properties hid them or took them to unknown locations or transferred them to third parties.

“All of this was done with protection from rogue or compromised police,” he noted.

Contractual clause

The claimant also failed to seize the shares and arrest the directors.

The debt has risen from Sh47.7 million and continues to increase due to interest, legal costs and penalties arising from agreed contractual terms.

“Although the director of the company, Mr. Thuranira, gave a personal guarantee for the debt, no amount has, to date, been paid to the petitioner”, indicates Team Construction.

This forced him to go the liquidation route.

The firm wants a receiver appointed and costs awarded to the petitioner.

In 2019, the Nairobi Security Exchange admitted Myspace Properties under the Ibuka Program, an incubation and acceleration program designed to boost businesses with growth prospects.


About Author

Comments are closed.