The planned disposal of Ekeza sacco property was likely to jeopardise an ongoing inquiry into the sacco.
David Kariuki Ngari had earlier retained Leaky Auctioneers to dispose of the assets, slated for February 14, before the court suspended the move.
He had said that the intended disposal of assets was meant to offset a huge deficit in refunds to members.
The High Court has stopped televangelist-turned-politician David Kariuki Ngare from selling hotels and land belonging to his real estate company as the government probes Ekeza sacco that is linked to him.
The planned sale was stopped following an application by the Commissioner of Cooperatives who told the court that disposal of the property would jeopardise an ongoing inquiry into the sacco which has deposits in excess of Sh2.56 billion.
The injunction stopped Mr Ngare, popularly known as Gakuyo, from selling Lillies Hotel in Juja, Salama House and Swift Breeze Hardware on Garissa Road, a quarry in Murang’a and 250 acres of land in Murang’a and Machakos counties.
“That an order of injunction is hereby issued restraining David Kariuki Ngari, Gakuyo Real Estate Ltd and Leaky Auctioneers Ltd from proceeding with the intended auction in respect of property owned by Gakuyo Real Estate Ltd,” ordered Justice Mary Kasango.
Mr Gakuyo had earlier retained Leaky Auctioneers to dispose of the assets, slated for February 14, before the court suspended the move.
He had said that the intended disposal of assets was meant to offset a huge deficit in refunds to members.
Yesterday, the court extended orders suspending the sale until March 7 when the suit will be heard inter-parties.
The televangelist is accused of running the sacco single handedly hence putting members’ interest in danger.
The Commissioner of Cooperatives told the court that Ekeza sacco and Gakuyo Real estate affairs are inter-related since they are operated by the same person giving false impression to the public that the two are same entity.
The televangelist is accused of running the sacco single handedly since its formation which the commissioner believes has exposed danger to members’ interest.
Commissioner of Cooperatives in December appointed a team to probe the Ekeza sacco.
Through a gazette notice published on March 23, 2018 Commissioner of Cooperatives cancelled the registration of the sacco stating that it had failed to meet its objectives, prompting Ekeza to move to court.
Ekeza then argued that the move was in breach of rules of natural justice and motivated by malice, noting that it jeopardises the business which has collected deposit from some 50,000 members.
But last May they reached an out of court deal and the suit was withdrawn.
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