President Kenyatta's cousins petition House in land battle with KCB

Two cousins of President Uhuru Kenyatta have taken their battle with KCB over a 443-acre farm worth a reported Sh700 million to the National Assembly.

Kungu Muigai and Ngengi Muigai have asked the Finance, Trade and Planning Committee to establish why the bank sold Muiri Coffee Estate Ltd without the owners' consent.

They also want necessary action taken against the bank if it is found to have sold and transferred the farm to Bidii Kenya Ltd without following due process.

The case has gone through the courts, with the Court of Appeal in June 2014 stopping Mr Kungu from taking it up to the Supreme Court.

They petitioned the National Assembly through Gatanga MP Humphrey Njuguna, who asked the committee to establish whether it was fair for the bank to dispose of the 443-acre piece of land.

“This is one of many cases where banks act and leave untold suffering,” Mr Njuguna told the committee, chaired by Ainamoi MP Benjamin Lang’at.

LOAN TAKEN IN 1989

The estate is located in Juja and its owners used it as a guarantee for Benjoh Amalgamated Ltd to the tune of Sh11.5 million. Benjoh had taken a Sh9 million loan from KCB in 1989.

In 1994, said the petitioners, the bank was paid Sh6 million by James Muigai (now late), leaving a balance of Sh3.4 million.

In July 1995, Mr Muigai’s widow, Ngina Muigai, inquired about the outstanding balance. She would be told in March 1996 that the bank was owed Sh44.3 million.

Mr Kung’u said the amount rose because money was stolen from the bank using forged letters.

The bank would in 2002 advertise Benjoh’s properties for sale by auction and when the company went to court and demanded that the bank produce statements of accounts, it turned to Muiri Coffee Estate Ltd.

The estate would eventually be sold to Bidii Kenya Ltd for Sh70 million in 2007.

Mr Kungu and Mr Ngengi, directors of Benjoh Amalgamated and Muiri Coffee Estate Ltd, said the coffee farm was worth well over Sh70 million.

There were also two other pieces of land in Nyandarua whose combined worth was also more than that amount.

They said the farm was in 2008 valued at Sh693 million, meaning that at Sh70 million a year before, it was sold for a song.

Juja MP Francis Waititu said he used to live on the farm and at no point did the bank send its representatives to view it.

“Muiri had no case. They should have gone for Benjoh,” said Mr Ngengi.

Mr Lang’at said the committee would require a summary of the cases and the judgements to come up with a way forward on the matter.

The committee may also have to ask KCB managers to explain the series of transactions and what led to the eventual sale of the farm.