Judge wants Kanu, firm row settled out of court

A court wants a Sh100 million-land sale dispute pitting a Nairobi businessman against Kanu settled through mediation or arbitration

Thursday, when the case came up for mention at the High Court in Nyeri, Justice Jairus Ngaah questioned why the parties — Bestlady Cosmetics Shop Ltd, Kanu and lawyer Titus Otieno Koceyo — have not attempted out-of-court settlement of the dispute.

The judge also noted that the parties had chosen not to argue their points orally but had instead selected to file written submissions. In their cross-responses in the case, the judge noted that the parties also wanted each other’s points struck out.

In the case, businessman Peter Karanja (the managing director of Bestlady Cosmetics Shop Ltd) has sued Kanu and the lawyer for failing to complete a Sh100 million transaction deal on sale of a quarter-acre of land situated in Nanyuki town, Laikipia County. The land is owned by Kanu.

He stated that the sale agreement was not executed due to internal wrangles between Kanu party chairman and secretary. According to court documents, Kanu) agreed to dispose off the propert known as LR number 2787/322- Nanyuki municipality, measuring 0.1310 hectares, to Mr Karanja so as to expand his business.

Through lawyer Gachie Mwanza, the businessman said he proceeded to execute the sale agreement drawn by Mr Koceyo and paid a deposit of Sh10 million.

The 10 percent deposit was made to Mr Koceyo’s bank account on October 6, 2017. He argued that the lawyer received the money as the trustee of both parties and who owed a duty of care to the plaintiff to release the funds to Kanu. The sale agreement had a completion period of 90 days upon payment of the balance of Sh90 million.

Mr Karanja said he later learnt that internal disputes had arisen within Kanu where the chairman and the secretary disagreed on many fronts relating to the transaction including which law firm would act for the political party. The sale agreement was certified and signed by the party chairman, Mr Gideon Moi, and secretary-general Nick Salat on October 14, 2017.

“The differences had caused them to refuse to execute the sale agreement prompting the plaintiff to demand for the signed agreement failure to which he would opt out and leave them handling their internal wrangles without trying his money. As it was evident that 90 days would lapse with nothing to show from the part of Kanu,” Mr Mwanza said.

Despite the businessman’s protestations, Mr Koceyo was not able to forward the signed sale agreement.

In response, both Kanu and Mr Koceyo admitted receiving the Sh10 million from the businessman but said nowhere in the sale agreement was Mr Koceyo required to hold the money as trustee pending happening of any event.

The political party said there were no internal disputes between the party officials and demanded proof from the businessman.