Akiba members ask CBK to pay up Sh2bn in unlawful raid
What you need to know:
- The Central Bank had sought to stay (suspend) the implementation of the orders saying it had an appeal that had high chances of success.
- In addition to closing the business, the directors, including Mr Mwiti, were arrested and charged - and later acquitted.
More than 10,000 members of the dissolved Kenya Akiba Micro Financing Limited have petitioned the Chief Justice to compel Central Bank of Kenya to return Sh2 billion and other assets that were confiscated by multiagency officers during a raid.
In their petition on Thursday, the members alleged "that CBK has delayed in resolving the issue of quantum of compensation payable to them as ordered by High Court judge Alfred Mabeya in May 4, 2012."
Akiba Micro Finance Ltd, owned by Imenti Central MP Gideon Mwiti, was invaded by officers from CBK, Banking Fraud Investigation Unit (BFIU) and policemen in November 2005, who took away computers, title deeds and logbooks.
The firm was accused of irregularly carrying out banking services.
In their petition that was also sent to President Uhuru Kenyatta, the Attorney-General and the Principal Judge of the High Court, Justice Richard Mwongo, the claimants say CBK did not succeed in asking the Court of Appeal to stop the execution of the orders of Justice Mabeya.
The Central Bank had sought to stay (suspend) the implementation of the orders saying it had an appeal that had high chances of success.
CBK’s application was determined by a three-bench judge comprising the CJ elect Justice David Maraga, Justice Erustus Githinji and Justice Wanjiru Karanja on May 1, 2013.
Akiba vehemently opposed the request by CBK pending determination of the intended appeal.
In addition to closing the business, the directors, including Mr Mwiti, were arrested and charged - and later acquitted.
Because CBK failed to prove criminality in the carrying out of financial activities by the directors.
The court ruled that pursuant to orders of Justice Mabeya, Akiba was to access the monies compensable.
The Appellate judges ruled: "There being no executable decree we find no merit in the application for stay and we dismiss it with costs."
The judges referred the case back to the High Court to evaluate the amount payable to Akiba members.
Through their chairman Reuben Kariuki, the members wants their money back to use to help their families.
“Some members have died before getting back their deposits as directed by the court while all the others are suffering together with their families,” Mr Kariuki states in the petition.
Edited by Philip Momanyi
