Tycoon revives Sh422m suit against StanChart for farm loss
Standard Chartered has denied convincing Mr Kinyanjui to go into the flower business. PHOTO | FILE
City tycoon Samuel James Kinyanjui has revived a 12-year court battle with the Standard Chartered Bank in which he is seeking Sh422 million compensation from the lender over alleged mismanagement of his flower firm.
Mr Kinyanjui says in amended court papers that Standard Chartered convinced him to hire its estate management subsidiary to manage his flower firm in 1994, but that the deal saw him lose millions due to neglect and breach of contract by the lender.
The tycoon claims Standard Chartered failed to provide a Sh40 million overdraft facility to his Torito Roses Limited, instead only advancing the flower firm Sh14 million which was not sufficient to stabilise the venture.
Mr Kinyanjui hired Standard Chartered Estate Management Limited to run his flower firm in 1994, but now says the lender’s subsidiary instead run Torito Roses down, leaving him in huge debt.
He now wants Sh320 million for lost proceeds he would have made from sticking to the coffee industry, and $1 million (Sh102 million) as compensation for the amount he was forced to pay back to the Eastern and Southern African Trade and Development Bank (now PTA Bank) after borrowing to support Torito.
“As a consequence of misrepresentations and negligence on the part of the defendants, Mr Kinyanjui’s business collapsed and he was forced to move to court over a long period. The plaintiff prays for judgment against the defendants for the sum of Sh320 million and $1 million for losses and expenses incurred due to breach of contract, misrepresentation and negligence,” Mr Kinyanjui holds.
But Standard Chartered has denied convincing Mr Kinyanjui to go into the flower business, and says it did not place his hiring of its estate management subsidiary as a precondition for all loans and overdraft facilities.
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