A neutral agent will collect rent from a property in Eldoret town initially belonging to a former international athlete, which was auctioned last year by NCBA Bank over a debt of Sh319 million.
The Court of Appeal said the neutral agent should preserve the Sh450,000 rent he collects every month, pending an appeal filed by Beatrice Jeruto Kipketer, the wife of Sammy Kipketer.
The two-storey building was auctioned in June last year but Ms Kipketer has challenged the sale, arguing the auction was staged as it was conducted without a professional valuation report, a mandatory requirement under the Land Registration Act.
“For avoidance of doubt, the status quo shall mean that the rents being collected by a neutral agent and being preserved shall continue to be so collected and preserved,” Justices Patrick Kiage, Francis Tuiyott, and Joel Ngugi said.
The judges further stopped Peter Sang, the man who purchased the building through the auction, not to transfer, sell or charge the property, pending the determination of the appeal. The building was auctioned to recover a loan her husband guaranteed Tejaskumar Ratilal Patel, a businessman who has allegedly fled the country.
Ms Kipketer through lawyer Ham Lagat has challenged the sale of the building, which was used as a guarantor, saying it is matrimonial property.
She says her consent was not sought before the building was used as security by her husband, because as the wife, she has an equitable interest in the property. She also argues that the control of the matrimonial home gives her an overriding interest in the property.
The woman said she contributed towards buying the land and in the construction of the building on Utalii Street and oversaw the development.
“It is the Applicant's contention that the Appeal against the impugned auction that was illegally staged on 26th June 2020 contrary to court orders, further the lease of the suit property was riddled with illegalities and legal wrongs as the term had lapsed way back in May, 2018,” Mr Lagat says adding that the appeal has a reasonable chance of success.
The building was used to guarantee a loan that was borrowed by Mr Patel through his company Prayosha Ventures. Mr Patel who tapped the loan from NIC in 2015, allegedly fled the country, shifting the debt burden to Mr Kipketer and former MP Stephen Tarus.
