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Nyagah granted order blocking arrest over Tatu City dealings

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Businessman Vimal Shah (left) with former Central Bank of Kenya governor Nahashon Nyagah at a past event. PHOTO | FILE

Former CBK governor Nahashon Nyagah has moved to court seeking to stop his arrest over alleged fraudulent transfer of shares worth Sh5.3 billion from real estate developer Tatu City project, as business mogul Vimal Shah separately sued foreign investors of the company for defamation.

Mr Nyagah on Thursday filed a suit seeking to stop the police from arresting and prosecuting him for allegedly transferring shares worth Sh5.3 billion from one of Tatu City’s land holding subsidiaries to his friends and relatives.

The former CBK governor claims the probe by the Directorate of Criminal Investigations into the alleged fraud is a plot hatched by Tatu City’s lead foreign investor Stephen Jennings to intimidate him into abandoning his call for an audit on loans they took using land intended for the project as security.

Justice Mumbi Ngugi granted a temporary order stopping the police from arresting Mr Nyagah until September 21 when she will hear the case.

“The complaints in respect of which Mr Nyagah is being investigated arise from boardroom wrangles between two camps of the Board of Directors of Kofinaf Limited (a Tatu City land holding subsidiary) in which the camp allied to Mr Jennings has conspired to take unilateral control of Kofinaf and Tatu City,” Mr Nyagah says.

He says the criminal proceedings are an attempt by Mr Jennings to arm-twist him into abandoning a legal battle the two are currently engaged in at the Commercial Division of the High Court.

The former CBK governor wants the court to allow four cases in the commercial courts between him and Mr Jennings concluded before any criminal proceedings can be instituted.

He further claims Mr Jennings has been trailing him and his family members.

“Mr Jennings and Robert Reid have misused CID officers to trail me, my family and friends, intimidating and harassing us under the guise of conducting investigations.

“I have reported the matter to Gigiri Police Station after arresting a suspect who owned up to having been instructed to trail me and monitor my movements, pay my neighbours and domestic workers to spy on me,” Mr Nyagah says.

READ: Nyagah named in Sh9 billion Tatu City land scandal

He also claims that Mr Jennings’ lawyers Ahmednasir Abdullahi and Evans Monari were pushing for his prosecution through various State agencies that he has represented in the past.

The suit comes as Bidco Oil Refineries owner Vimal Shah and Nyagah’s co-shareholder in Tatu City has sought compensation from the foreign investors for allegedly defaming him during a June 9 Mindspeak Forum held at the Sankara Hotel in Westlands.

Mr Shah says Mr Jennings uttered defamatory words about his involvement in the Tatu City saga.

The Bidco owner has also sued Mr Jennings’ firm Rendeavour, CEO of financial website Aly Khan Satchu and controversial blogger Cyprian Nyakundi.

The defendants, he says, have published the defamatory statements on their websites and social media pages. He says Mr Satchu and Mr Nyakundi asked Mr Jennings leading questions during the forum in a bid to have him continue defaming him.

“Despite the gravity of the allegations being made against Mr Shah by the defendants and despite repeated demands by Mr Shah, they have failed to pull down the defamatory article,” say the suit papers.

Mr Shah adds that Mr Nyakundi attempted to extort Sh40 million from him so as not to post the offensive material on his website and Twitter page.