Mr Ngengi Muigai (second left) with lawyers at the courts during the
hearing of the land case between him and KCB. PHOTO | FILE
Summary
- KCB sold prime coffee farm located in Kiambu for Sh760 million to recover a Sh70 million loan eight years ago.
- Appeal judges Lady Justice Hannah Okwengu, Justice Sankale ole Kantai and Lady Justice Fatuma Sichale have directed all the parties involved in the dispute dating back to 1989 to file evidence in three weeks.
- KCB has filed an appeal to challenge a finding by a superior court judge that it manufactured statements of accounts when it demanded to be paid Sh70 million by Benjoh Amalgamated Ltd which borrowed a loan in 1989 to finance a flower project in Nyandarua County.
The Court of Appeal has set the stage
for resolving a 27-year-old loan dispute pitting two relatives of
President Uhuru Kenyatta and Kenya Commercial Bank over the sale of a
prime coffee estate.
KCB sold the coffee farm located in Kiambu for Sh760 million to recover a Sh70 million loan eight years ago.
Appeal
judges Lady Justice Hannah Okwengu, Justice Sankale ole Kantai and Lady
Justice Fatuma Sichale have directed all the parties involved in the
dispute dating back to 1989 to file evidence in three weeks.
KCB
has filed an appeal to challenge a finding by a superior court judge
that it manufactured statements of accounts when it demanded to be paid
Sh70 million by Benjoh Amalgamated Ltd which borrowed a loan in 1989 to
finance a flower project in Nyandarua County.
Lady
Justice Joyce Khaminwa (late) had in a ruling established that KCB did
not have a proper statement of account for Benjoh whose managing
director is Captain (rtd) Kung’u Muigai, a relative of President Uhuru
Kenyatta.
Muiri Coffee Estate Ltd, another company
associated with Ngengi Muigai — a former assistant minister during
President Daniel Moi’s era — guaranteed the loan for Benjoh to the tune
of Sh11.5 million. When Benjoh allegedly failed to repay the loan KCB
sold Muiri Coffee Estate. Muiri is also in the court contesting the sale
of its coffee farm when it had already paid Sh6 million of the loan,
leaving a balance of Sh5.5 million.
Brothers Kung’u and
Ngengi are cousins of the president. When the appeal came up for
hearing the lender sought an adjournment since its lawyer, Philip
Nyanchoti, was bereaved.
Benjoh and Muiri, defended by senior counsel Paul Muite
and John Wachakhana, asked the judges to direct all the parties to file
written submissions within 30 days.
However, the appellate judges reduced the time of filing the evidence for each party to 21 days.
The
lender is asking the court to quash a ruling by a former High Court
judge ( the late Justice Joyce Khaminwa) who found that it “had
manufactured the statement of accounts of Benjoh.”
The
firm says it did not know how much money was disbursed to suppliers of
the flower project and how much cash was advanced to it
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