Tycoon TSS’ estate in trouble as NBK demands Sh4 billion debt

Twahir Said Sheikh. (Photo: Maarufu Mohamed, Standard)

A company associated with Mombasa tycoon Twahir Said Sheikh, who died earlier this year, has disputed a Sh4 billion debt demanded by the National Bank of Kenya (NBK).

Juja Coffee Exporters Ltd Thursday admitted before a court in Mombasa that it owed the bank money from a past loan but has disputed the amount.

The firm has questioned how the loan ballooned to Sh4 billion but NBK has asked the High Court for orders to auction five properties that belong to the company to recover its money.

Juja Coffee Exporters Limited has obtained interim orders restraining the bank from auctioning the properties.

Thursday, Justice Patrick Otieno extended the orders until the next court hearing.

TSS died in January, leaving a crumbling financial empire that ran across several countries. His children are torn apart by court battles over control of his estate.

A relative and his former employees have been charged with forging documents and his signature to secure huge loans from banks.

Thursday, lawyers for the firm told the court that although it is willing to repay the loan, it is unable to raise the Sh100 million demanded by NBK as a first instalment.

Company director Tahir Said told the court that it would be prejudicial and unfair to pay the Sh100 million before the next hearing.

"The company is ready to come to a negotiated settlement with a view to clearing the outstanding loan but cannot make the Sh100 million payment at the moment as requested," he said.

Lawyer Paul Munyao for NBK had asked the judge to compel the firm to pay the Sh100 million before the next hearing.

"As a business, we would like the company to deposit at least Sh100 million as the orders are being extended since operations have to go on," said Munyao.

Sought orders

Juja Coffee Exporters Limited had on April, 2017, sought orders restraining the bank from interfering with its property until the matter is heard and determined.

The company asked the court to restrict the bank, its agents, servants, or employees from marketing, advertising, selling, or leasing the property to recover the debt.

The bank had indicated that the debt had accrued interest of Sh12 million a month.

The matter will be mentioned on July 13.

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