alexa Buzeki's firm faces auction over huge debt - Daily Nation

Buzeki's firm faces auction over huge debt

Monday June 17 2019

Uasin Gishu businessman cum politician

Uasin Gishu businessman cum politician Bundotich Zedekiah Kiprop, popularly known as Buzeki. PHOTO | FILE | NATION MEDIA GROUP 

ANITA CHEPKOECH
By ANITA CHEPKOECH
More by this Author

Rift Valley businessman cum politician Bundotich Zedekiah Kiprop alias Buzeki has suffered a major blow after the High Court allowed the sale of his company property to settle a long-standing debt.

Buzeki Enterprises Ltd sought to stop auctioneers from attaching the company over a Sh340 million land deal between the firm and Landmark Port Conveyors that went sour in 2016.

In a ruling issued on Friday, Justice Mbogholi Msagha ruled that Buzeki had failed to live by his word despite the court granting him an opportunity to pay Sh118 million in monthly installments of Sh3 million.

“It’s clear that, despite the accommodating indulgence on the plaintiff/respondent, the defendant/applicant has not lived to its word or the legitimate expectation. Good faith is demonstrated by inter alia, consistency and predictability. Going by the record of this case, that is lacking in the conduct of the defendant/applicant.

“The end result is that, this application is dismissed in its entirety with costs to the plaintiff/ respondent. What this means is that the plaintiff/ respondent is now at liberty to proceed with the execution of the judgment in its favour against the defendant/applicant,” said Justice Mbogholi.

DEPOSIT REFUND

Advertisement

In the case, Buzeki entered into a binding sale agreement with directors of Landmark Port Conveyors amounting to Sh340 million on August 17, 2015 for the sale of two properties in Mombasa County, a piece of land measuring 1.16 hectares in Section VI Mainland North and another 1.07 hectares in Section VI Changamwe Miritini.

The applicant paid Buzeki’s firm Sh105 million with Sh91 million paid through his bank account, Sh9 million in cash and later Sh5 million to the defendant director’s account.

Buzeki was expected to discharge the mortgage accrued on the Mainland North property upon receipt of the deposit and the balance of the purchase price, but he didn’t.

Instead, he asked the buyer for a review of their agreement. The applicant then demanded for a refund of the deposit paid.

When Buzeki failed to refund the money, he proceeded to file a case in court through Kamunye Gichigi and Company Advocates, claiming for the refund of Sh94.5 million (forfeiting 10 percent) and interest accruing at commercial bank rate from December 2016 until full payment is made, cost of the suit plus interest as court rates.

High Court deputy registrar’s office issued an order commanding Moran Auctioneers to sell Buzeki company’s properties by auction in execution of the judgment.

The order allowed the auctioneer to sell the debtor’s property to realise the money.