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Economy

Ex-athletics boss’ family to refund firm Sh4 million

The late Isaiah Kiplagat. FILE PHOTO | NMG
The late Isaiah Kiplagat. FILE PHOTO | NMG 

The family of former Athletics Kenya chairman Isaiah Kiplagat has been ordered to refund close to Sh4 million to a businessman after a botched deal.

The court heard that Mega East Africa Limited was to take over Mr Kiplagat’s business in Karen, which included a bar, restaurant, hair salon, gym and swimming pool, among other assets.

Mr Kiplagat’s family, however, disagreed with the new owners after operating in the premises for only three weeks.

The court was told that the new management paid good will of Sh2.7 million, rent for six months amounting to Sh1.2 million and electricity bill arrears of Sh111,868.

The lease of the property was to run for 15 years, starting on November 10, 2006, but the new owner lasted until December 2, 2006, about 20 days after moving in.

When the new owner took over the family business, he was also to take in the existing customers, stock in trade and employees.

Mega East Africa through lawyer Titus Koceyo said the company was also to construct some cottages on the parcel.

Mr Koceyo told the court that a disagreement arose after Mrs Joan Catherine Kiplagat, Kiplagat’s wife said some assets including glasses from the restaurant were not part of the agreement.

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