SIB to attach Bomas bank accounts over Sh104m debt

Standard Investment Bank (SIB) has been allowed to attach two bank accounts belonging to Bomas of Kenya over a debt of Sh104 million, arising from an arbitral award.

Justice Alfred Mabeya ruled that Bomas of Kenya has not denied that the amount is yet to be settled and the argument that the money in the two bank accounts at KCB, Moi Avenue Branch, was not enough to pay the entire amount, was no reason to deny the bank from attaching the accounts.

“In view of the foregoing, I am satisfied that the application is meritorious and I allow the same as prayed,” the judge said. It was not immediately clear how Bomas of Kenya, a tourist village, became indebted to SIB.

The investment bank moved to court seeking to be allowed to attach the two bank accounts, to satisfy the award as directed by the court on July 11, this year.

SIB informed the court that the arbitral award was published on May 4, 2020, and endorsed by the court on November 25, last year.

The court further heard that the total amount due was Sh108.4 million plus the costs of the case.

Bomas of Kenya opposed the application arguing that the directions given by the court had not been complied with.

It maintained that it was willing to settle the money and had written to the parent Ministry, seeking financial support as it sought a delay of 90 days to settle the amount.

The judge heard that the court had directed the Deputy Registrar to compute the interest payable on the arbitral award and the same had not been complied with. Further, the Board of Bomas of Kenya had taken steps to secure funding to settle the debt.

The two bank accounts reportedly hold a total of Sh52.9 million, which is not enough to settle the entire amount, and the funds were meant for employee salaries.

However SIB submitted that the settlement of a court decree is not conditional on budgetary allocation.

The Bomas of Kenya was launched in 1971 to preserve, maintain, educate and promote the cultures of various ethnic groups in Kenya, but has over the years become a favourite venue for state functions including constitutional conferences.

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