A member of the Kenyatta family wants British American Investment Company to complete the purchase of his 242 acres of land in Juja to enable him clear a debt with Barclays Bank of Kenya.
Michael Muigai Kenyatta wants the court to order the listed investment firm to honour a contract between the two sides.
But BAI wants Mr Kenyatta compelled to refund a deposit of Sh70 million paid for the land whose value was Sh700 million. He is a son of the late Peter Muigai, a son of the late president Kenyatta.
Judge Joseph Mutava yesterday allowed Mr Kenyatta’s lawyer, Gichuki King’ara, to compile the submission before hearing of the case on May 3.
Mr King’ara said the investment company had backed out of the deal without any valid reason. “You cannot enter into a purchase agreement today and breach the same tomorrow. BAI must honour the specific performance of the contract,” said Mr Kinga’ra on Monday.
BAI says in court papers that it cancelled the deal after the parties declined to disclose that a court order had been obtained in a separate case involving Mr Kenyatta, Barclays Bank, and property developer Suraya Group, stopping any transaction on the land.
Last December, a court allowed Mr Kenyatta to sell a portion of his land to offset a Sh565 million Barclays Bank debt.
BAI has filed a fresh suit against Mr Kenyatta, Njomaitha Investment (a company owned by Mr Kenyatta), and his lawyer Mr King’ara seeking a refund of Sh70 million paid last November as deposit towards purchase of the land.
The company wants the court to order Mr King’ara, as a stakeholder, to release Sh63 million to the investment company and the remaining Sh7 million placed in an escrow account.
BAI company secretary Nancy Kiruki says in a sworn affidavit that after the firm deposited Sh70 million to facilitate the drawing up of a sale agreement, Njomaitha, “was not ready, able or willing to complete its part of the bargain.” “In the circumstances, we had no option but to rescind the agreement and seek a refund,” says Kiruki citing non-disclosure of material facts by Mr Kenyatta and his lawyer to the effect that an injunction had been obtained in court.
Suraya Property Group director Peter Muraya moved to court seeking orders to block the sale of the land to BAI on grounds that Mr Kenyatta had undertaken a joint venture with the developer for the construction of Oak Valley Estate, a gated community in Juja, off Thika Road.
The real estate firm had signed a joint venture agreement with Mr Kenyatta and Njomaitha to form Oak-Tree Golf Properties Ltd to undertake the proposed developments of a middle class housing estate.
The project was set to have 751 houses on the land complete with a shopping mall, petrol station, and a primary school.
The units were to comprise 279 town houses, 472 apartments, and two club houses. It was to be built on 286 acres.
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