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By:
RICHARD MUNGUTI | |||||||||
| Posted:
Dec,19-2016 12:35:34
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A kin of President Uhuru Kenyatta has opposed the use of police to assist a company to evict him from his Sh700 million coffee estate over a Sh70 million bank loan.
Mr Ngengi Muigai, through his company Muiri Coffee Estate Limited in Thika, Kiambu County told High Court Judge Lady Justice Grace Nzioka on Monday that the move by Bidii Kenya Limited to use police to gain entry into his property is unconstitutional and unlawful.
Muiri, says Kenya Commercial Bank (KCB) which sold the coffee estate to Bidii in 2007 knows very clearly that the Sh70 million loan it demanded from Benjoh Amalgamated Limited is in dispute.
Muiri had in 1989 secured a bank guarantee of Sh11,500,000 to enable KCB release the loan applied by Benjoh Amalgamated. The amount which KCB released to Benjoh is not known and the payable amount is also not known since no proper accounts have been prepared.
Mr Muigai opposed a case by Bidii to have Kiambu County Police Commander arrested and jailed for six months for failing to "assist and supervise the eviction of Muiri from its property."
Justice Nzioka was told the Attorney--General who is defending the Police has not been served with the case filed by lawyer Mansur Muathe Issa for Bidii.
The judge heard that the police have refused to assist Bidii to enter the farm it purchased from KCB after Benjoh and Muiri failed to pay the loan.
Mr Muigai availed to Justice Nzioka a judgement delivered in 2009 by a former judge--the late Justice Lady Joyce Khaminwa--who established that KCB did not have a proper statement of account of Benjoh Amalgamated.
A bank witness Mr Chris Theuri admitted under oath that the bank had lost documents in relation to the account of Benjoh and a true bank statement regarding that account cannot be stated.
KCB send a notice to Benjoh to pay Sh70 million as the outstanding loan.
Benjoh had been guaranteed Sh11,500,000 only by Muiri when it applied for the loan in 1989 to finance a flower project in Nyandarua. In 2008 KCB required Benjoh to pay it Sh168,065,347.80.
Also, the company is being asked to restrain Bidii or its agents from encroaching into its property.
Muiri is also asking the court to declare that KCB's remedy and or recourse is against Benjoh.
Hearing of the case will be on January 31. | |||||||||
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