KCB Group #ticker:KCB did not furnish a company with a statement of accounts before moving to auction its estate which it estimates to be worth Sh3 billion, relatives of president Uhuru Kenyatta told the Court of Appeal Monday.
In the latest twist to the 27-year-old loan dispute, Judges Roselyn Nambuye, Milton Makhandia and Kathurima M’Inoti were told that the the lender auctioned Muiri Coffee Estate Ltd in 2007 based on a fraudulent bank statement of accounts.
The judges heard that KCB proceeded to sell the land before availing a full statement of account to Benjoh Amalgamated Ltd, a firm it had advanced a Sh11.5 million loan in 1989.
Benjoh, owned by Captain (retired) Kung’u Muigai - a cousin to the president - had offered two securities in Nyandarua County as a guarantee for the land. Muiri Coffee Estate Ltd, associated with former assistant minister Ngengi Muigai, had also pledged the farm under coffee as security.