Jimmy Wanjigi family company locked in debt dispute with contractor

Kwacha Group of Companies, a holding firm for several businesses owned by the family of businessman Jimmy Wanjigi, is engaged in a court battle with a contractor over payment for alleged renovations done at its headquarters in Nairobi’s Westlands.

Pindoria Holdings has sued the Wanjigi family’s company for allegedly refusing to pay for a facelift it gave Kwacha House on General Mathenge Drive in Westlands.

The contractor holds that it carried out the works in accordance with the contract signed but that with the Kwacha has defaulted on the agreed payment.

Kwacha is a multibillion-shilling business empire owned by the family of Jimmy’s father-- former Cabinet minister Maina Wanjigi.

The company has shares in Carbacid Investments, East Africa Cables, Kenya Airways, Total Kenya and Barclays Bank.

It also owns the Nyeri, Murang’a and Kitamaiyu Coffee Estates. Kwacha’s real estate investments include housing projects in Ridgeways, Karen and Nakuru.

“Sometimes in February 2012, Jimmy Wanjigi informed me that Kwacha was in the process of carrying out renovation works in its premises. Kwacha and its architect consequently approved the quotation (by Pindoria) and proceeded to carry out the renovation. In breach of the contract, Kwacha did not settle the invoice and the amount has continued to accrue interest and stands at Sh15 million,” Pindoria says.

Kwacha has denied entering into a contract for renovation with Pindoria and says it is a stranger to the amount claimed by the construction firm. The company admits to receiving demand notices and an intention to sue from Pindoria.

Pindoria has attached as evidence an invoice with specifics of the works it claims to have done on Kwacha House.

“The alleged claim is baseless and an attempt to extort money from the defendant. The suit is malicious and has been filed to embarrass Kwacha,” the company says.

The contractor wants the court to strike out Kwacha’s defence insisting that it prepared an invoice at the request of Kwacha, and that the document was approved in June 2014.

Pindoria holds that the amount was Sh12 million in June 2014 but has accrued interest and that it will continue to grow at a rate of 18 per cent per year until Kwacha settles it in full.

“Pindoria subsequently prepared the final accounts for the works undertaken which initially amounted to Sh10.9 million and revised upwards to Sh12.8 million VAT inclusive... Kwacha through Jimmy Wanjigi made several written and verbal promises to settle the outstanding sum,” adds Premji Pindoria, a director at the construction firm.

The case comes up on Monday, when the presiding judge is expected to determine whether the parties are ready for a full hearing.