Homeowners of the Alma development in Ruaka, Kiambu County, gathered on November 2, 2024, for an important meeting addressing the project’s status, financing efforts, and ongoing legal proceedings. Real Estate Research Analyst Allan Naiguta led the discussion, providing an overview of project milestones, financial strategies for completion, and the effects of current litigation on Alma’s timeline.
The Alma project is a flagship development featuring 477 apartment units with a comprehensive lifestyle featuring a wide range of amenities – laundromat, a convenience store, elevated play grounds and open spaces, a swimming pool, restaurant, fitness centre, daycare and skills centre. The Alma has so far handed over 301 units across the first three phases. With Phase 4 is incomplete and approximately KES 350 million is required to finalize the development within three to six months after securing financing. Developer Cytonn is optimistic, with over KES 2.7 billion in expected receivables from unsold units and pending payments, which could support project completion and pay stakeholder obligations.
Legal proceedings surrounding Alma’s assets were a key concern. Preservation orders issued by the High Court currently protect the assets but do not place Alma under liquidation or receivership. The High Court had permitted SBM Bank to proceed with recovering debts owed by the developer, CIP LLP, without ever hearing from the developer or there being any default from the developer, hence Cytonn has appealed that decision at the Court of Appeal. CEO Edwin Dande emphasized to homeowners that these issues stem from legal proceedings rather than any insolvency in Alma’s finances.
Dande strongly advised homeowners to consult their legal advisors. He suggested to homeowners not to fall for the trap of filing proof of debt with regard to their homes, clarifying that doing so would erroneously classify them as creditors. “It would be conmanship to tell you to file your proof of debt yet you are a homeowner not a creditor. Filing your proof of debt is akin to voluntarily giving up your constitutional protections of Right to Property under Article 40 of the Constitution and getting under the Insolvency Act for a project that has not administration nor insolvency orders over it.” He stated that Alma’s issues are legal, not financial. “Alma will be completed; it has not contravened any law. If I look at the cash flow, it is there. The only issue is the preservation orders and the bitterly contested consent between SBM Bank and the Official Receiver.”
The project’s legal counsel Celestine Koile, Managing Partner at Mali Advocates echoed this advice, explaining that filing proof of debt is intended for creditors of companies under liquidation, which is not applicable to Alma. “Our advice is, as a homeowner, just stick to being a homeowner; you have your documents,” she stated.
Dande also clarified that if the Official Receiver agrees to a consent to remove the matters out of court, it would allow a formal request to the High Court to lift the preservation order, enabling project completion, preserving jobs, handing over homes and reducing disputes in court. This process would require agreement from the property owners, SBM Bank, the Official Receiver, and the developer.
Assuring homeowners of his commitment, Dande emphasized that Alma’s completion is a priority. With funds in place and legal clarity forthcoming, Cytonn remains dedicated to delivering the final units and upholding homeowners’ rights in the development.
