Former powerful cabinet minister Nicholas Biwott at a function early this year. Photo/BILLY MUTAI
What you need to know:
Lady Lori sues Mr Nicholas Biwott seeking to be paid bills he is said to have incurred in 2012.
Former powerful cabinet minister Nicholas Biwott has been taken to court over a debt of Sh14.5 million in a year that the businessman made it to the list of Africa’s top billionaires.
Helicopter firm, Lady Lori Kenya Limited, says Mr Biwott has refused to clear the debt incurred for use of its plane services between January to September last year. The firm, whose ownership changed recently, wants the court to compel the former minister to settle the debt.
“We have made several demands to the defendant to clear the balance to no avail leading us to institute this case,” said George Odongo, Lady Lori finance manager in court document.
“As of August 13, 2013, the amount outstanding in respect of the services rendered was US $ 169.157.47 (Sh14.5million) and this has been communicated to the defendant,” he added.
The company said that Mr Biwott had for a long time been using its helicopters and settling dues after invoices based on flight duration and distance covered were forwarded to the tycoon.
Lady Lori alleges that the businessman settled part of the bill for the nine months to September last year and declined pay arrears of Sh13 million, which had grown to Sh14.5 million with interest.
Mr Biwott is yet to respond to the lawsuit filed on November 19. The pay row comes in a year when Mr Biwott made it to the list of Africa’s top billionaires as captured by Nigeria-based financial magazine Ventures.
The magazine said that he was among the 55 Africa’s dollar billionaires in a list that included other three Kenyans — Mama Ngina Kenyatta, Naushad Merali and Manu Chandaria — whom the magazine tips as the wealthiest in the country and 25th richest in the continent with a combined fortune of $1.65 billion (Sh142 billion).
The magazine, which published the list of rich Africans for the first time, placed the fortunes of Mr Biwott and Mr Merali, who both made their money during the era of President Moi, at about $1 billion (Sh86 billion).
But Ventures noted that the wealth numbers were conservative amid claims that it only captured a share of Mr Biwott’s fortune.
The former minister has vast investments abroad and, in Kenya. He is associated with Yaya Centre, an upmarket shopping centre in Hurlingham, Nairobi, oil marketer KenolKobil as well as land and property valued at billions of shillings.
The suit comes in a year that saw American investors cede ownership of Lady Lori to their local executives for an undisclosed amount.
Ian Mimano, the CEO of the helicopter firm, Peter Njagi (maintenance manager) and Adi Vinner acquired ownership mid-this year of the firm started 15 years ago by an American couple, Jim and Lori De Nooyer, who moved to Kenya from New York.
They started with one helicopter, which they used to travel across the country and later leased it to a commercial operator at the Wilson Airport. The couple bought a second aircraft and tapped Mr Mimano to set up and steer the helicopter operation.
After years of operating from Laikipia, Lady Lori launched services in Nairobi. The move was to position the company for growth.
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