Lawyer holds ‘lost’ KPCU’s Sh2bn land title deeds

Titles for land worth Sh2 billion that the Kenya Planters Co-operative Union (KPCU) claimed were lost while under the custody of a bank are being held by its former lawyer over non-payment of legal fees.

This was revealed Monday as KPCU lost a battle in the High Court to wrestle the management of the farmers’ union from KCB Group, which was blamed for the loss of the titles.

Nairobi lawyer, Peter King’ara moved to the High Court on January 16 and obtained orders to continue holding 11 titles, five allotment letters and 16 vehicle log books, claiming that KPCU owed him Sh101.4 million in legal fees.

Mr King’ara claims the farmers’ union had threatened to use the police to arrest him for failing to hand over the documents. His admission supports KCB’s position.

The bank, through lawyer Kamau Karori, had maintained that it was not given the titles when the lender placed the union under its management for unpaid loans.

READ: KPCU title deeds missing in Sh700m dispute with bank

The union has been in receivership since 2009 and owes KCB Sh680 million. KPCU moved to court early this month to stop the bank from running its affairs.

KPCU in November agreed to pay the bank Sh100 million and settle the remaining Sh580 million within six months, leading to the lifting of the receivership.

The farmers’ body failed to meet the settlement terms, prompting KCB to appoint fresh receiver managers in January 9.

But KPCU moved to court and claimed that it was unable to pay the Sh100 million on the failure by the bank to make available land titles that could have secured money from a financier.

On Tuesday, Justice David Majanja dismissed the KPCU suit on the grounds that the agreement it signed with KCB had provided for arbitration as the dispute resolution mechanism and the suit was an abuse of court process.

Mr King’ara says the union gave him the titles to keep because the bank wanted to auction the property.