Legal showdown looms as developer rejects Beitbridge council contract termination

Thupeyo Muleya, Beitbridge Bureau

A LEGAL showdown is looming between the Municipality of Beitbridge and land developer Kingdom Lifestyle Africa (Private) Limited after the company rejected the local authority’s decision to terminate its contract for the development of Matibe (Eastlea) low-density residential stands.

The municipality earlier this week announced the termination of its Memorandum of Understanding (MOU) with Kingdom Lifestyle Africa and directed beneficiaries of the Eastlea project to redirect all payments to the council.

The decision was contained in Public Notice No. 38/2026 dated September 13, 2026.

However, Kingdom Lifestyle Africa has disputed the termination, arguing that the municipality had no legal basis to cancel the agreement and had failed to follow due process.

In a statement issued on Thursday, the developer said it regarded the purported termination as unlawful and insisted that the MOU remained valid and binding.

“The purported termination by the Municipality is disputed and unlawful; the Municipality has no lawful basis to terminate the Memorandum of Understanding, nor do they have the right to arbitrarily terminate a binding contract like they purport to have done,” said the company.

Kingdom Lifestyle Africa said the termination was substantively and procedurally defective, adding that its contractors and personnel remained on site and that construction work at the Eastlea development was continuing.

The company also moved to reassure beneficiaries affected by the conflicting directives, telling them to contact its offices for clarification on their stands and accounts.

“For the avoidance of doubt, beneficiaries are advised to continue making all payments, instalments and any other obligations relating to their Eastlea stands directly to Kingdom Lifestyle (Africa) private limited, through the same channels and accounts previously used,” said the developer.

It said it would continue recognising receipts, records and account statements issued to beneficiaries and would ensure that payments were accounted for and applied towards the respective stands.

Kingdom Lifestyle Africa warned beneficiaries against redirecting payments to other parties, saying they would do so at their own risk and that the company would not accept responsibility for any loss, double payment or dispute over ownership or account status arising from such action.

“Kingdom Lifestyle (Africa) Ltd is not forcing a relationship here but is bound by a live contract. If the Municipality is serious about terminating the said contract, they should do so the right and legal way, respecting the interests of all stakeholders involved,” reads the statement.

The developer said the municipality’s position risked creating confusion around the project and affecting beneficiaries who were not party to the dispute.

Despite the standoff, Kingdom Lifestyle Africa said it remained committed to the Eastlea project and was open to constructive engagement with the municipality to resolve the matter amicably and in the best interests of beneficiaries.

 

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