China news agency, Senator tangled in Sh580m land row

A Chinese media house has been accused of colluding with Isiolo Senator Mohamed Kuti to lock out two land agents in the sale of three prime pieces of land in Nairobi’s Kilimani worth Sh580 million.

Claudia Gatta and Evans Mbugua, the property agents, have sued Xinhua News Agency and Mr Kuti for allegedly reneging on a deal to pay them agency fees for facilitating the sale.

Mr Mbugua claims he and Mr Kuti signed a contract in which he was to get a buyer for the three pieces of land, after which he was to get a commission from the sale.

Ms Gatta on her part claims that Xinhua’s director, Yuan Bingzohng, approached her to find a piece of land to purchase, after which she informed Mr Mbugua of the Chinese firm’s interest in land. the two allegedly agreed to split the commission.

“Ms Gatta forwarded to Xinhua copies of the title deed and deed plans to the land. In total disregard of Ms Gatta and Mr Mbugua’s role, the defendants sidestepped them and got into negotiations which culminated in the sale of the land at Sh580 million,” the agents said in suit papers.

They claim that despite sending demand letters to Mr Kuti and Xinhua, they have declined to homour the agents’ claim.

Xinhua has however denied engaging Ms Gatta to find it land for purchase and claims it was not aware of any deal between the agents regarding commission.

“Xinhua denies the existence of a contract and that the plaintiffs were its agents. If there is a contract under which the plaintiffs were to be paid any amount, it is not a contract to which Xinhua was a party to,” the Chinese firm said in response.

Mr Kuti has also denied signing any contract with the two agents, and has demanded that they furnish the court with proof of the alleged deal struck for commission.

He added that he was introduced to Xinhua by another agent whom he has not identified, but insists that what the commission agreed on was paid in full after the sale of the land.

Ms Gatta and Mr Mbugua reckon that they introduced Mr Kuti to Xinhua and that the agreement made was oral. They claim that after corresponding with Mr Kuti and Xinhua and arranging for a site visit by the Chinese firm’s director, they learnt that the two had already finished transacting over the land.

“We then wrote to Xinhua, and copied Mr Kuti, asking it to confirm that it had learnt of the parcel of land through us. Xinhua responded through its advocates indicating that it had no contractual relationship with us,” Ms Gatta added.

The Senator has further denied receiving any demand letter from the agents, and says their suit is malicious and not founded on any law.

Lady Justice Farah Amin on Friday granted Mr Kuti 14 days to file a witness statement from the Senator, after which she will mention the matter to confirm whether all four parties are ready to proceed to a hearing.