Development Bank of Kenya will pay Kitutu Chache North MP Jimmy Angwenyi Sh2 million in form of damages for auctioning his property in Thika at a “throw-away” price without notifying him.
In a decision made by the commercial court in Nairobi, the bank is liable of selling the politician's five-acre land 18 years ago at Sh650,000 while the value was estimated to be between Sh1.2 million and Sh2 million. The financial lender auctioned the land situated within the Central Business District of Thika Municipality so as to recover a defaulted loan of undisclosed amount.
"The property was sold slightly more than half its forced sale value of Sh1.2 million. This is an apparent sale at under value. The bank’s witness attempts to justify this as the best possible available bid but does not demonstrate sufficient effort made to achieve the forced sale value (of Sh2 million)," said Justice Francis Tuiyot.
The lender failed to prove the cost of Sh650,000 was the best price reasonably attainable at the time of the sale of the land that was invaded by squatters and stone miners.
While ruling on the 15-year-old legal tussle, the court opted to award Mr Angwenyi damages equivalent to the market value of the property at the time of sale on May 2, 2002.
Mr Angwenyi wanted a compensation of Sh120 million which he said was the current market value of the property according to a report filed by a valuer.
But his demand was rejected by the court because the valuer failed to obtain comparable prices for the relevant period (2001 and 2002).
In December 2012, the valuer put the market value of the property in the year 2004 was Sh20 million.