Kenneth denies fraud in house purchase deal

Planning assistant minister Peter Kenneth has distanced himself from claims he was part of a conspiracy to sell off assets of a former State corporation.

Mr Kenneth, who has declared interest in running for the presidency, on Sunday issued a statement showing how he ended up owning a house in Nairobi’s posh Kibagare neighbourhood.

It is alleged that Sh11.7 million paid for the house did not reach the accounts of the Kenya National Assurance Company (KNAC), which collapsed.

The house under scrutiny by Parliament’s Public Investments Committee is the current home of Mr Kenneth.

On Sunday, Mr Kenneth said the property in question was bought by Marenyo Ltd from the former parastatal in 1996.

He added that the company paid Sh1.3 million as deposit for the house.

“While the transaction was ongoing, KNAC went into liquidation and subsequently appointed Njenga, Njau & Co. Advocates to complete the transaction on its behalf,” Mr Kenneth said.

He said Marenyo Ltd paid the law firm the balance of the payment through their lawyers Munene & Co. Advocates and concluded the transaction.

“The said property was bought from Marenyo Ltd by Andrea Ltd, a company in which I am a director, in 1998,” the Gatanga MP added.

Mr Kenneth said he had provided the PIC with all relevant correspondence regarding the transaction.

The facts before the committee are that the former parastatal sold the house to Marenya Ltd, a company associated with city lawyer Ambrose Rachier.

Marenya Ltd paid KNAC lawyers Sh11.7 million.

But in between the agent and the receiver, the money “disappeared”, because it is not reflected in the books of the KNAC.