Collapsed lender joined in disputed Kenya Railways land

Televangelist James Ng’ang’a’s Neno Evangelism Centre.  

Photo credit: File | Nation Media Group

Collapsed Kenya Finance Bank has been joined in a case where the Ethics and Anti-Corruption Commission (EACC) is seeking to recover a parcel of land belonging to Kenya Railways Corporation (KRC) from Pastor James Maina Ng’ang’as Neno Evangelism.

Justice David Mugo Mwangi ruled that the collapsed lender was a necessary party in the proceedings as it holds relevant information necessary for the effective and conclusive determination of the issues raised in the case.

The Kenya Deposit Insurance Corporation (KDIC), the liquidator of the bank, had submitted that the collapsed lender allegedly facilitated the sale of the property by way of a transfer to Neno Evangelism Registered Trustees and pastor Ng’ang’a.

“For that reason, the court allows the application by the intended defendant/applicant and joins it as the fifth defendant in this case,” said the judge.

The lender has been under liquidation since 1996.

Pastor Ng’ang’a says he is the registered legal and absolute proprietor of the land having acquired it from a couple for Sh8 million on June 22, 2011.

He says the previous owner was Aminmohamed Rahim Bhanjee, who had 99-year lease from October 1994.

After the demise of Mr Bhanjee, his wife, Farida Aminmohamed, was issued a certificate of confirmation of grant after a succession case on July 17, 1998.

Pastor Ng’ang’a said he purchased the land after conducting due diligence on the property at the Lands office and confirmed that the title was genuine. He says in court documents that he has been in quiet possession of the land until recently, when he began the construction of a commercial building, on the land.

The judge, at the same time, rejected an application by KDIC to be removed from the proceedings, saying the liquidator’s participation was necessary to enable the court to effectively and completely adjudicate upon and settle all questions involved in the case.

KDIC argued that an institution in liquidation has the capacity to be sued in its own name despite being insolvent.

Pastor Ng’ang’a had opposed the application stating that the transaction happened way back in the year 2008. At that time, the predecessor of KDIC, the Deposit Protection Fund did not enjoy the ‘immunity’ from suits.

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