The company, which is owned by relatives of industrialist Manu Chandaria — Dhiren, Ashok and Sachen — in 2012 won a Sh6 billion award after the High Court found that Ministry of Land officials had colluded to illegally take possession of and subdivide its land.
Orbit has in a fresh case sued the Land Principal Secretary, Nicholas Muraguri, demanding that the entire Sh19.9 billion be paid following the collapse of out-of-court negotiations with Attorney-General Githu Muigai.
Orbit claims in its new suit that Prof Muigai has only been insisting on out-of-court talks as a delay tactic.
Industrial chemicals manufacturer Orbit has renewed its fight for Sh19.9 billion it was awarded as compensation for loss of a 95.2 acre piece of land to shadowy government officials.
The company, which is owned by relatives of industrialist Manu Chandaria — Dhiren, Ashok and Sachen — in 2012 won a Sh6 billion award after the High Court found that Ministry of Land officials had colluded to illegally take possession of and subdivide its land but the amount has since grown to Sh19.9 billion arising from a 14 per cent interest charge per year.
The interest, which has now more than doubled the principal, was to start accumulating from March 4, 2008 until the amount is fully paid.
Orbit has in a fresh case sued the Land Principal Secretary, Nicholas Muraguri, demanding that the entire Sh19.9 billion be paid following the collapse of out-of-court negotiations with Attorney-General Githu Muigai.
Dr Muraguri is yet to respond to the suit.
Orbit, founded in 1972, produces industrial chemicals and sells them to other players in the manufacturing industry.
The firm’s website lists Unilever, Johnson Diversey, Reckitt Benkiser, Farmer’s Choice and Del Monte as part of its vast clientele.
Orbit claims in its new suit that Prof Muigai has only been insisting on out-of-court talks as a delay tactic.
It now wants the court to order Dr Muraguri to pay the amount according to orders Justice Roselyn Nambuye issued in 2012.
“It has been four years since the judgment was delivered in favour of Orbit and up to 20 years since Orbit first filed a suit against the Attorney-General to ascertain its rights. Orbit having been frustrated by the AG with false promises of settling the decretal sum obtained a certificate of order against the government dated March 30, 2017 which was served upon the AG, Solicitor-General and the Land PS.
“The Land PS being the accounting officer of the registrar of titles and the commissioner of lands has since the date when judgment was delivered refused to make any payment to Orbit in satisfaction of the decretal amount, which as of May 1, 2017 stands at approximately Sh19,967,029,969 and is still increasing,” Orbit’s executive director, Sachen Chandaria, says in court papers.
Dhiren serves as Orbit’s chief executive.
The suit comes at a time when several other firms and individuals have been paid or are seeking huge amounts of money from the government.
Little success
The reality, however, is that only a few entities succeed in getting compensation from the government even after courts have ordered for release of funds.
The list of the firms that have managed to get their court awards paid includes Afrison Import and Export, a real estate firm that was awarded Sh4.2 billion in 2011, and has since been paid most of the funds. The picture, however, has not been as rosy for other firms and individuals.
Kirinyaga Construction, a firm associated with former Mathira MP Ephraim Maina, is in court seeking imprisonment of Transport and Finance principal secretaries for failing to honour a Sh545 million award it won in 2015 for a botched road deal.
Kay Construction, another contractor, also wants the Defence PS cited for contempt for failing to release Sh1 billion it was awarded in 2011.
The High Court last year issued a warrant of arrest for Interior PS Karanja Kibicho for failing to release Sh223,625 to cyclist Patrick Mutua, who won the amount as compensation for an accident involving a military vehicle in 2007.
Orbit purchased the prime land from National Bank of Kenya #ticker:NBK in 1987, but discovered that then Registrar of Titles, Jemimah Munjuga, had placed a caveat on it on behalf of the government.
Orbit, after years of pursuing land officials, finally got the green light from the commissioner of lands in January 2000 lifting the caveat. But the property’s file had by the time gone missing at the Land registry.
Orbit’s lawyer, Michael Eustace Aronson, later said that he had investigated the matter with the help of then deputy commissioner of land, Abdi Osman. He added that high-level consultations with the then Lands PS got him the message that “the matter was political and emanated from a higher source”.
Justice Nambuye in 2011 ordered the government to pay Orbit a negotiated Sh6 billion with interest of 14 per cent on the amount from 2008. The Attorney-General has since challenged the award at the Court of Appeal.
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