A long-running real estate dispute involving billionaire John Kibunga Kimani has escalated to the Supreme Court of Kenya. His firm is moving to prevent a commercial manufacturer from challenging a previous legal victory concerning an uncompleted land transaction.
The legal battle involves a valuable agricultural parcel in Murang'a County. Rural Development Services (RDS), a firm representing the prominent Nairobi Securities Exchange (NSE) investor, filed the application to block an appeal by African Cotton Industries (ACI).
The manufacturing firm wants to contest an appellate ruling.
That earlier decision freed the billionaire from completing the multi-million shilling transaction, which has been locked in the judicial system for over a decade.
This dispute traces its roots back to July 2013, when the property firm entered into an agreement to sell a prime 51.28-acre piece of land located in Makuyu.
ACI agreed to purchase the property for Sh205 million.
The buyer paid a ten percent cash deposit totaling Sh20.5 million to secure the transaction.
However, the transaction quickly stalled.
The prominent investor faced intense pressure from his immediate family members, who strongly objected to the disposition of the asset.
The family emphasized that the Makuyu holding constitutes a vital portion of their rural settlement and ancestral matrimonial home. Following these domestic objections, the seller decided to withdraw from the transaction.
The corporate vendor promptly refunded the entire Sh20.5 million down payment to the manufacturing firm.
Despite receiving the financial refund, the prospective buyer refused to accept the cancellation of the property agreement, choosing instead to initiate legal action seeking an order for specific performance to compel the completion of the acquisition.
The matter moved to the Environment and Land Court (ELC) for formal adjudication.
During the initial trial, the purchasing company presented testimonies concerning the billionaire's well-being. Witnesses claimed that the seller was not in stable mental health when signing the contract, citing a road accident in February 2013.
The lower court dismissed those specific claims.
The judge ruled that there was insufficient evidence to prove diminished mental capacity at the execution stage.
The land court eventually ruled in favor of the buyer, ordering the billionaire's company to conclude the land sale.
In addition to the property transfer, the lower court entertained a substantial claim for financial damages. The purchasing company sought Sh846.3 million, exciting lost profits from a stalled industrial expansion strategy.
The billionaire's firm successfully appealed against that initial decision.
On March 25, 2026, the Court of Appeal sitting in Nyeri completely overturned the land court judgment.
The appellate judges determined that the immediate return of the deposit weakened the legal basis for demanding contract enforcement. They noted that the buyer kept the returned funds safely in a bank account.
The higher court also criticized the buyer for failing to mitigate potential losses. The judges observed that remaining inactive for seven years while claiming an inability to find comparable real estate was unacceptable.
The industrial buyer subsequently moved toward the highest court in the land. This escalation prompted the latest legal response from the billionaire landowner to bring a final end to the case.
Kimani built his substantial wealth over decades through patient and disciplined investments across the country. The Makuyu parcel remains part of his extensive private landholdings.
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