Firm wants Sh3bn for presidential furniture
What you need to know:
- Documents in court indicate that in 1990, the then President Daniel arap Moi picked Furncon for the deal after reviewing bids from several other firms.
Furncon designed and fitted an assortment of instruments for the mini-State House at the Agricultural Society of Kenya grounds in Jamhuri, the Moi Air Base and Eldoret Barracks.
The High Court has been petitioned to stop the opening of the presidential museum and exhibition centre. Furncon Limited, a local company that has been designing and fitting presidential instruments for State functions since 1990, wants a suit it filed against the government seeking Sh3.5 billion compensation determined before the centre is opened.
SH3.5 BILLION
The firm says State House plans to officially open the centre this month, which will mean excluding instruments that Furncon designed and manufactured in the 1990s.
Documents in court indicate that in 1990, the then President Daniel arap Moi picked Furncon for the deal after reviewing bids from several other firms.
Furncon designed and fitted an assortment of instruments for the mini-State House at the Agricultural Society of Kenya grounds in Jamhuri, the Moi Air Base and Eldoret Barracks.
The firm fit a mace, chairs and several other instruments at the ASK grounds for the 1992 and 1993 international show following a directive from Mr Moi.
After the show, the Department of Defence ordered the firm to collect the presidential instruments despite the fact that it was yet to receive payment.
In 2007, Furncon sued the government seeking compensation. Its claim has now risen to more than Sh3.5 billion.
BANKRUPTED
In 2017, then Attorney-General Githu Muigai sought an out-of-court deal with the firm. The discussions are ongoing.
Furncon’s Managing Director Solomon Kiore says the deal bankrupted the firm and thus it was unable to seek similar assignments in other African countries. He says he took a Sh1 million loan from Postbank Credit Limited in 1992 for the State House deal, and used his matrimonial home as security.
When he failed to pay and the bank refused to await payment from State House, it auctioned the home for Sh1.5 million in 1997. He unsuccessfully sued the buyer, Mr Thomas Kimotho, in 2011. Mr Kiore argued that the buyer had paid a Sh350,000 deposit — Sh25,000 less than 25 per cent of the purchase price stated in law.
But while High Court judge Lucy Gacheru agreed with Mr Kiore on the botched auction, she dismissed the suit. The judge argued that Mr Kimotho’s failure to complete payment for the land did not absolve Mr Kiore from the debt to Postbank Credit.
