Court freezes Mugoya firm’s bank accounts

A law firm has frozen bank accounts of Mugoya Construction company in six Kenyan banks.

Gichuki King’ara & Company Advocates froze the company’s accounts in Middle East Bank, Stanbic Bank, KCB, Transnational Bank, Citi Bank and Habib Bank.

The construction company’s business, which is relocating to Uganda, could be in jeopardy as a result of the action.

The High Court in Nairobi issued an order on Monday freezing all the firm’s bank accounts to secure the interests of the law firm.

The law firm, which acted for the construction company in a Sh342 million suit against the National Social Security Fund, is pursuing Sh29.4 million in legal fees.

The firm has decided to relocate to Uganda, the home country of its majority shareholder and managing director, Mr James Abiam Mugoya Isabirye. But Gichuki King’ara & Company moved to the High Court early this year, claiming that the construction firm had declined to pay for legal services rendered.

Lawyer Maureen Mithamo, a partner in the law firm, told the High Court that the firm went to court for calculation of the bill and the court awarded them Sh29,497.765.

High Court deputy registrar S. Okato issued them a certificate of taxation, and they applied to the High Court to convert the calculated amount into a court order.

Mr Mugoya challenged the order, but there was a delay in the case. As a result, Justice Musinga converted the calculated bill into a court order on June 4.

Mr Mugoya is disputing the order, saying the judge’s decision did not consider that he could not peruse the case because the court file could not be found.

Ms Mithamo told the court that the law firm could not locate the company’s equipment and assets, saying they were being transferred to Uganda.

She told the judge that the six banks were holding Sh324 million that the National Social Security Fund paid the construction firm.

Justice Alfred Mabeya ordered the banks to freeze the accounts and set the hearing for August 27.