Kenyatta kin’s firm allowed to take KCB to supreme court

A firm associated with former assistant minister Ngengi Muigai has been allowed to revive a 22-year-old legal battle with the Kenya Commercial Bank over a 443-acre farm in Juja, Kiambu County.

Through the company that owns the farm, Muiri Coffee Estate, Muigai’s family has moved to the Supreme Court seeking to reverse the sale of the farm by KCB in 2007. The land, which the family says is worth Sh3 billion, was sold to Bidii Kenya Limited through a public auction for Sh70 million.

“This appeal will be heard either in January or February 2015,” the Supreme Court registry told the Sunday Nation. Summons are now expected to be issued to the parties involved to attend court for directions on how the trial will proceed.

The dispute arose from a guarantee that Muiri Coffee Estate gave to Benjoh Amalgamated Limited to secure a loan of Sh11.5 million from KCB in 1988.

The loan was advanced under a programme sponsored by United States Agency for International Development (USAID) meant to help local entrepreneurs to undertake commercial projects.

By the time of sale, at least 11 cases had been filed on the matter. It is in one of these cases, filed in 1992, where the two companies are said to have entered into a consent to repay the loan on or before July 31, 1992 and in default allowing the bank to sell the land. Muiri says it did not instruct its lawyers to enter into a consent.

Appeal Judges Patrick Kiage, Agnes Murgor and Jamila Mohamed have ruled that Benjoh Amalgamated Ltd and Muiri Coffee Estate had legitimate grievances of great public importance that deserved attention of the Supreme Court.