Hotel to be revalued afresh

An independent valuer will be appointed to determine the value of the Grand Regency Hotel, the Cockar Commission ruled on Thursday.

The valuer will be paid by the Central Bank of Kenya through the commission, ruled Mr Justice Majid Cockar, who is chairing the commission investigating the controversial sale of the five-star hotel.

The retired judge was responding to an application by assisting counsel Wilfred Mati, who made the application after noting that various witnesses had given different valuations of the hotel.

Stamp duty

The Chief Government Valuer, Mr Anthony Mateng’e Itui, had valued the hotel at Sh2 billion for purposes of stamp duty in June this year.

A director with LIoyd Masika Company, Mr David Masika, valued the property at Sh1.754 billion in January while in February, Mr Didacus Nkonge of Value Zone valued the hotel at Sh1.62 billion.

Another valuation done jointly by LIoyd Masika and Tysons in February 1997 established the value of the hotel to be Sh2.1 billion, according to the commission’s 17th witness, Mr Joseph Kittony, who began giving his evidence Thursday

Mr Kittony was a receiver manager at the hotel between 1994 and 1999.

Grand Regency Hotel was sold at Sh2.9 billion to a Libyan firm in June.

Mr Mati further noted that evidence by the current receiver manager, Mr Patrick Kamau, differed with that of his predecessor, Mr Peter Ndaa.

Mr Kamau had said the hotel was not doing well when it was sold to the Libyans in June. However, Mr Ndaa, who was the hotel’s receiver manager between 2004 and April 9, this year, said the hotel was making profits.

“So,” Mr Mati told Mr Justice Cockar in his application, “it is imperative for a relevant valuer to look at the value of the hotel.”

Sale proceeds

He said a professional valuer should be appointed by the commission, adding the cost should be borne by the CBK.

“This is because the subject matter for which this commission was constituted is presumed to be their property. And even the sale proceeds were received by them,” Mr Mati said.

One of CBK’s lawyers, Mr George Oraro, said the bank had no problem paying the valuer’s fee as long as the money was paid through the commission.

Lawyer Michael Mubea, for the new hotel owners, said after consulting his client, it had been agreed to give the valuer access to the hotel.

However, former Finance minister Amos Kimunya’s lawyer Githu Muigai objected, saying the commission was taking too much time on valuations.

He said his client was being prejudiced as his name has not been mentioned by any witness, yet he is not in his office.

But Justice Cockar told Prof Muigai he would have to wait for the new valuation to be done before raising his objection.