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Man sues Senator Kindiki’s company for breach of land sale agreement

By Joseph Muchiri | Published Wed, April 11th 2018 at 09:39, Updated April 11th 2018 at 09:44 GMT +3
Peter Muriithi at his home in Kirinyaga County. (Correspondent, Standard)

Senate Deputy Speaker Kithure Kindiki and Joyce Kindiki risk being arrested and committed to civil jail after failing to pay a retired tutor Sh5.1 million.

On May 20, 2015, through their company, Intercity Group Ltd, they bought 20 acres of land from Peter Muriithi for Sh21 million, but paid him only Sh17.1 million.

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Mr Muriithi, 71, who taught at St Andrew's College, Kabare, sold the land to raise money for medical treatment for heart disease and diabetes, which had resulted in the amputation of his left leg. He intended to use the Sh3.9 million arrears to seek specialised treatment in Germany.

Intercity Group Ltd was to meant pay him the balance within 90 days but defaulted.

On February 29, 2016, Muriithi sued the company at the Embu Magistrate’s Court. On September 27, 2017, Chief Magistrate Maxwell Gicheru ordered the firm to pay him Sh7.1 million, which included the balance and liquidated damages of Sh1.7 million, interest and cost of the suit.

According to Muriithi, an agent of the firm deposited Sh2 million in his account and promised to pay the rest later.

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But on October 5, 2017, the company filed an appeal at the High Court in Embu seeking a reversal and setting aside of the judgement by the Magistrate's Court. The hearing of the matter is yet to begin.

In its defence, Intercity Group said it was still interested in paying up. A witness statement by Moses Mpuria Kindiki, a company director, said: “There were issues relating to the financing and other inconveniencing developments that hindered payment of the balance of the purchase price."

He further argued that the sale agreement was conditional to the company being financed by the Agricultural Finance Corporation for the purchase price, where the land would act as security.

According to a letter from the Registrar of Companies dated October 10, 2017, Tharaka Nithi Senator Kithure Kindiki and Joyce Kindiki co-own Intercity Group, each holding 300 ordinary shares.

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The hearing continues on May 14.