Court of Appeal Clears Auction of Ksh1.2 Billion Upper Hill Property in Blow to Hass Petroleum Chairman
Hass Petroleum Group Limited Chairman Abdinasir Ali Hassan has suffered a major legal setback after the Court of Appeal dismissed his petition seeking to block the sale of a prime Ksh1.2 billion property in Nairobi’s Upper Hill area.The judgment exposed the soft underbelly of the businessman who has been in the limelight for very bad reasons over the existence of his empire that is shrouded in fraud, shortcuts and political patronage.
In a ruling delivered by a three-judge appellate bench led by Justices Wanjiru Karanja, Mumbi Ngugi and Aggrey Muchelule, the court dismissed the petition with costs, stating that it failed to meet the required legal threshold.
The ruling threw the sprawling empire that Hassan has developed over the years and now stares in destruction and deluge from many cases that he has faced over the years.
The ruling in itself sent shockwaves across the country’s corporate scene sparking talk of ruin, rapture and disrepair for one of the country’s most ruthless and overarching businessmen, clothed in political patronage, fear and intimidation.
According to court documents dated September 15, 2020, One Upperhill Towers Limited secured the suit property in favour of Credit Bank Limited as collateral for financial facilities amounting to Ksh1.2 billion advanced to Jabavu Village Limited and Hasson Pharmaceuticals Limited.
However, on January 30, 2025, One Upperhill Towers Limited moved to the High Court, protesting plans by Credit Bank Limited to auction the property through Purple Royal Auctioneers and Garam Investments Auctioneers, despite claims that the loan was being serviced regularly.
The ruling marks a spectacular fall for the petroleum magnate, whose business interests now hang in the balance as creditors close in on valuable assets that symbolized his success across the country.
The applicant argued that the intended sale was malicious, unprocedural and unlawful, citing alleged failure by the bank to comply with mandatory provisions of Sections 89, 90 and 96 of the Land Act. They further claimed that their right to redeem the property had been violated.
In its determination, the court held that there was clear evidence of default, noting that once a charged property is used to secure a loan and the borrower defaults, it automatically becomes a commodity for sale. The judges therefore cleared the way for the auction to proceed.
Court documents reveal a complex web of corporate debt that began unravelling in September 2020 when One Upperhill Towers pledged the suit property as collateral to Credit Bank, owned by the family of former powerful minister Simeon Nyachae.
The security was intended to guarantee enormous financial facilities totaling tio Ksh1.2 billion advanced to two associated companies Jabavu Village Limited and Hasson Pharmaceuticals.
The deal appeared straightforward until cracks began to emerge. By January 30, 2025, One Upperhill Towers rushed to the courts in a frantic effort to the Credit Bank Limited from auctioning the property through Purple Royal Auctioneers an Garam Investment Auctioneers.
In court papers file with evident urgency, Hassan’s camp painted a picture of corporate persecution, claiming the loan had been serviced regularly and that the bank’s auction plans were nothing short of malicious, unprocedural and unlawful.They accused Credit Bank of flouting mandatory provisions enshrined in Section 89, 90 and 96 of the Land act, insisting their legal right to redeem the property had been trampled upon.
The Court of Appeal was hearing none of it. The court found that the arguments by Hassan’s team lacked merit.
The court held that evidence of default was crystal clear and indisputable. In language that left the courtroom mute, the judges explained that once a charged property is used to secure a loan, and the borrower fails to meet their obligations, the property automatically transforms into a commodity available for sale. The default, they determine, triggered the bank’s legitimate right to recover its funds through auction.
The high court decision represents more than a legal defeat for Hassan. It exposes the precarious financial position of businesses under his control and raises questions about the group’s ability to service debts accumulated during what now appears to be an ambitious aggressive expansion drive.
Wiper Hill, where the said property sits, ranks among the most sought-after commercial districts. The area has transformed over the past decade into a glass corridor towers, international hotels, and corporate headquarters for some of the region giant economic players.
Hass has lost a legal fight and it suggests that the financial pressures facing his group may be far more severe than previously understood. Credit Bank on its part maintained a studied silence through the legal proceedings.
Purple Royal and Garam Investment, the two auctioneer firms charged with execution of the orders can now move in to take control of the said property
