Uhuru kin back in court to fight KCB Sh700m auction

Two companies linked to President Uhuru Kenyatta’s kin have asked the Court of Appeal to review a judgment that allowed KCB Group to auction a property worth more than Sh700 million to recover a loan advanced 24 years ago.

Benjoh Amalgamated Limited and Muiri Coffee Estate Limited, owned by Captain (Rtd) Kung’u Muigai, urged Justice G B M Kariuki, Justice Daniel Musinga and Justice William Ougo to review the judgment.

KCB sold the 443-acre Muiri Coffee Estate, which Benjoh Amalgamated had used as collateral to secure a loan in 1989.

The property is reported to have been sold for Sh70 million on September 19, 2007, but Captain Mungai, who is Senator Beth Mugo’s brother and President Kenyatta’s cousin, argues that the property was worth more than Sh700 million.

Lawyer Tom Wachakana for Benjoh and Muiri said the judgment delivered on March 10 1998 was wrong since an agreement that led to the auction was entered by a lawyer who was acting for the two companies.

He also urged that the outstanding loan was unknown since there were no records of the loan account, adding that he will be moving to the Supreme Court for interpretation whether a decision can be made without records.

The judgment was delivered by Justice Richard Otieno Kwach (retired), Mr Justice Samuel Bosire (retired) and Mr Justice Philip Tunoi (Supreme Court). But KCB through lawyer Philip Nyachoti asked the three judges to dismiss the application with costs, saying “it is the most frivolous and a total abuse of the court process.”

Mr Nyachoti said the matter has been decided in previous judgments before the bank moved to realise its monies.

Mr Nyachoti said a total of 18 cases have been filed from that transaction. Some are pending and others have been determined. He said the Court of Appeal has determined four and all have been pegged on the consent judgement entered in 1992.

In March 4, 1992 consent was entered between the bank and Benjoh to offset the outstanding loan through a lawyer whom the Kenyatta kin reckon was not acting on their behalf.

Mr Wachakana told the court that the lawyer on record for Benjoh was Mr D M Kinyua (now deceased) while KCB was represented in the case by the late John Ougo. A judgment will be delivered on November 22.