Church taken to court after Sh125 million land sale deal goes sour

A private property developer has sued the Seventh Day Adventist (SDA) Church for allegedly failing to return Sh125 million after an unsuccessful land sale.

Under a certificate of urgency filed before the High Court, Lafua Gardens Limited and its lawyer Joseph Ogeto claimed the church had failed to remit the monies after the property sale aborted.

The church has been sued together with the law firm that represented it in the transaction. Oreima Okoth, Kenneth Kiplagat and George Ogembo Company Advocates acted as the church's advocates in the botched sale done on March 3 this year.

Representing Mr Ogeto and Lafua, lawyer Omwanza Ombati told the court: "The second plaintiff (Lafua) borrowed the sum of Sh125 million for purposes of completing the purchase of Land Reference Number 209/3205 whereupon it continues to pay for the monies at commercial interest rates, while the respondent advocates continue to unlawfully and illegally hold onto the same as stakeholders in the transaction."

The firm intended to build apartments for sale on the land but the sale did not materialise after the 120 days agreed between the parties. The church's lawyers were to register the piece of property in the name of the new owner after which the transaction would have been completed.

Several meetings

"Despite several meetings between the plaintiff's advocates and the respondent, followed by exchange of correspondence after the transaction was frustrated, the defendants have failed, neglected or ignored to comply... as stakeholders and release the monies at issue," Ombati said.

According to the lawyer, a caveat was registered last month, days after the agreed period had lapsed. He argued that the late entry frustrated the whole process.

In its court papers, the firm complained: "Registration was never completed and law as a caveat was registered against the Title on May 25, when the completion documents were presented for registration hence frustrating... the sale agreement and therefore bringing the agreement and transaction thereof to an abrupt end."

The firm now wants the court to compel the church to return the money. It also complained to the advocate's tribunal in a bid to have Oriema, Kiplagat and Ogembo disciplined for holding back the money.

The firm wants the three lawyers struck off the role of advocates if found guilty. Ogeto said one of the partners had indicated he had already devoted the monies to other issues.

"In a meeting held between myself and Kiplagat on behalf of the respondents on June 17, he indicated he had appropriated the monies for personal commitments," he said.