Bank, post office in battle for Sh1.1bn rent
Postal Corporation of Kenya Ag CEO Daniel Kagwe addresses a media breakfast meeting at Sarova Stanley Hotel, Nairobi, on September 1, 2016. Kenya Post Office Savings Bank has a temporary order restraining PCK from evicting it from a building that houses its branch in Chaani, Mombasa. PHOTO | DENNIS ONSONGO | NATION MEDIA GROUP
What you need to know:
- The bank says it is not in arrears of Sh12,137,119 or any amount in rent to the postal corporation.
Two parastatals formed from the giant Kenya Posts and Telecommunications Corporation are engaged in a battle over Sh1.1 billion rent.
Kenya Post Office Savings Bank has a temporary order restraining Postal Corporation of Kenya (PCK) from evicting it from a building that houses its branch in Chaani, Mombasa.
The bank has also rented three other branches from PCK on Tom Mboya and Ronald Ngala streets and Enterprise Road in Nairobi and has not paid rent “as the amounts are to be offset from the debt”.
According to the bank, PCK owed it Sh1,166,157,562 by December 2015.
The bank says it is not in arrears of Sh12,137,119 or any amount in rent to the postal corporation.
The bank’s secretary Mercy Mbijiwe said PCK owes the institution a debt, which includes deposits held by the defunct KPTC, pensions accrued but not remitted and restitution of amounts recovered from fraud and commissions.
However, PCK legal services manager Jane Otieno said the bank was not telling the truth.
“The inclusion of the allegations in the application is for the purposes of delaying payment of rent,” she said.
The Environment and Land court directed the two parastatals to exchange their submissions and fixed the case for hearing on November 24.
