Firm linked to Kenyan industrialist Vimal Shah loses $16 million Tatu City stake battle

An investment vehicle linked to Kenyan industrialist Vimal Shah and former central bank governor Nahashon Nyagah is set to lose its stake in the multibillion-shilling Tatu City project, marking a decisive turn in a long-running ownership dispute.

The setback follows a final ruling by the Privy Council, which dismissed an appeal by businessman Stephen Mbugua Mwagiru seeking to block the sale of shares held through offshore entities tied to the development.

Court ruling seals stake disposal

In its May 14, 2026 decision, the Privy Council upheld earlier rulings allowing the liquidation of Manhattan Coffee Investment Holdings, the entity through which the Kenyan investors held their interest in Tatu City.

The court found that Mwagiru lacked legal standing to challenge the disposal of shares once the company entered liquidation, effectively clearing the path for the assets to be auctioned.

The ruling brings to a close nearly a decade of litigation spanning multiple jurisdictions, including the United Kingdom and Mauritius.

Ownership structure and offshore dispute

The contested stake was held through a complex offshore structure involving Mauritius-registered vehicles, which controlled interests in the Kenyan project.

At the center of the dispute is the shareholding in Tatu City, a roughly Sh240 billion ($—figure approximate, you may want to verify current valuation) mixed-use urban development north of Nairobi.

Legal battles have revolved around control of these offshore entities, shareholder dilution claims, and debt obligations tied to the project’s financing.

Arbitration fallout and liquidation

The dispute escalated following a London arbitration process, which resulted in a financial award against Manhattan Coffee Investment Holdings. The failure to successfully challenge that award within the required timeframe allowed creditors to initiate liquidation proceedings.

Subsequently, liquidators moved to dispose of the company’s shares, triggering a series of legal challenges from Mwagiru that have now been exhausted.

End of a prolonged battle

The Privy Council’s decision effectively ends the Kenyan investors’ ability to retain their indirect stake in Tatu City through the offshore structure.

While the ruling focuses narrowly on legal standing in liquidation, its practical effect is the transfer of control over the disputed shares, closing one of Kenya’s most complex and protracted real estate ownership battles.