KCB ordered to release Sh76m to AA Bayusuf & Sons

AA Bayusuf & Sons submitted that Section 94 of the Civil Procedure Act only requires that permission of the court to execute before taxation be sought where the party elects to proceed with execution before costs are assessed by the taxing master.

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KCB Bank Kenya has been directed to release Sh76.8 million belonging to a State agency to transport firm AA Bayusuf & Sons.

The High Court directed the lender to release the amount to the company to settle a debt owed to it by the Northern Water Works Development Agency.

The amount arises from a contract for the Garissa Sewerage Project in 2009.

"Garnishee Order Absolute is hereby granted commanding KCB Bank Limited to forthwith pay Sh76,822,199.82 from the account domiciled at the Garnishee’s Garissa Branch, in satisfaction of the decretal sum due to the Decree Holder (AA Bayusuf & Sons Ltd)," said the court.

The state agency had opposed the application, arguing that it was irregular as AA Bayusuf & Sons had commenced execution proceedings before taxation of costs.

The agency also argued that the move to seek the leave within the application makes the said application defective, irregular and illegal.

According to the Northern Water Works Development Agency, the correct procedure is to first seek permission of the court as required by Section 94 of the Civil Procedure Act.

AA Bayusuf & Sons submitted that Section 94 of the Civil Procedure Act only requires that permission of the court to execute before taxation be sought where the party elects to proceed with execution before costs are assessed by the taxing master.

The firm said there was nothing illegal or irregular in seeking the permission within the same application for execution such as the present application.

The company argued that it is their prerogative whether or not to pursue costs at a later date, and since the court awarded them costs in the matter, nothing stops them from coming back to collect the same once they are ascertained by the court.

"I am in agreement with the Applicant that the object of Garnishee proceedings is to enable the Decree Holder to reach a debt due from the Judgment Debtor, sufficient to satisfy the decree. The only requirement is that the Garnishee is indebted to the Judgment Debtor," said the court.

The court noted that the debt was admitted and adopted by the court in a decision in June 2025.

The High Court further noted that KCB had confirmed that it was holding funds sufficient to satisfy the said debt in the accounts of the debtor in its Garissa Branch and that there was no one else laying a claim on the funds.

The court said the state agency had the opportunity to file grounds of opposition to the said prayer but made none.

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