Former CBK boss Nyagah wins Tatu City fraud case

Businessman Vimal Shah (left) with former Central Bank of Kenya governor Nahashon Nyagah at a past event. FILE PHOTO | NMG
Businessman Vimal Shah (left) with former Central Bank of Kenya governor Nahashon Nyagah at a past event. FILE PHOTO | NMG 

Former Central Bank of Kenya governor Nahashon Nyagah is set to get compensation for being wrongly accused of fraud in a property transaction associated with Tatu City, a 2,500-acre multi-billion shilling real estate development.

Mr Nyagah will be paid yet-to-be-specified damages together with city lawyer Nelson Havi and Lucas Akunga Omariba for being falsely accused of fraud by two companies — Kofinaf, one of Kenya’s largest coffee growers and Mauritius-based Galba mining limited.

In his October 6 ruling, Justice Francis Tuiyott found the two companies at fault together with its lawyers from the firm of Ahmednassir, Abdikadir & Co advocates for first having instigated a suit against them and then later seeking to have it withdrawn.

“The affected defendants must be compensated by the persons who have taken them through this arduous and unnecessary path,” said Mr Justice Tuiyott in his ruling.

“This is not the way litigation should be conducted. Yet, on the other hand, the controversy that was the very reason for the filing of this suit remains unresolved ……the court is therefore inclined to, yes, admonish the plaintiffs.

The judge added: “The conduct of the plaintiffs is deplorable. They have engaged in gamesmanship and attempted to pull the rug from under the feet of the affected defendants.”

The dispute dates back to two years ago, when the two companies sued the trio for conspiring to defraud them ownership of a property known as Purple Saturn, whose majority shares were transferred to Galba from Kofinaf.

At one time, Mr Nyagah was the chairman of the board of Kofinaf and even sought the nominee trustees of Purple Saturn.

Through their lawyers in early 2015, the two firms wrote to the registrar of companies seeking to know what changes would be reflected if a return of allotment is accepted.

At the same time, they filed a suit accusing the former CBK boss, Mr Havi and Mr Omariba, a former chief executive at Tatu City of fraud, as they sought to have any changes made reversed.