Former governor Waititu urges court to lift hotel freeze in graft probe

Former Kiambu Governor Ferdinand Waititu during the Mashujaa Day celebrations at Uhuru Gardens,Nairobi. October 20, 2022. [Elvis Ogina, Standard]

Former Kiambu Governor Ferdinand Waititu has asked with the court to unfreeze his multi-million shilling Nairobi hotel.

Waititu in his appeal wants the court to suspend the order that gave control of his Delta Hotel located opposite the University of Nairobi to the Ethics and Anti-Corruption Commission (EACC) arguing that he is likely to lose the property for failing to service a Sh200 million loan he used to acquire it.

"The freezing order effectively diverts income from the hotel which usually services a Sh200 million from Equity Bank. The order means that we will default on repaying the loan and attract punishment from the bank," he said.

The hotel was a among the former governor's Sh1.9 billion property which were frozen last week by High Court judge Esther Maina over allegations that they were acquired through proceeds of graft.

Justice Maina not only stopped the Waititu from dealing with the hotel but also allowed EACC to appoint a receiver manager.

The former governor however in his appeal to overturn the decision argues that the Delta Hotel should not be part of the property he is suspected to have acquired through corruption since it has been confirmed that he bought it using the Sh200 million bank loan.

"It is not in dispute that the hotel was acquired through a loan which has been confirmed by the bank, and the income from the facility has at all times been used to service the loan which will stop should the hotel be placed under receivership," he said.

According to the ex-governor, allowing EACC to take control of the hotel will reduce the income since the receiver manager will take a huge portion as salary which should have gone to service the loan.

He argued that the receiver manager will not have the zeal and necessary expertise to market and manage the hotel which will result to losses.

"The property has nothing to do with the alleged corruption and it is against natural justice to put the hotel under receivership. The order is just meant to deny Equity Bank its right to recoup its loan and consequently make me lose it by defaulting repayment," swore Waititu.

Justice Maina had issued the freezing orders restraining the former governor from dealing, disposing or selling his property pending determination of the suit in which EACC is seeking to recover the assets for being proceeds of corruption.

The frozen property are registered in the names of Waititu, his wife Susan Wangari Ndung'u and their three companies Saika Two Estate Developers Limited, Bienvenue Delta Hotel and Bins Management Services Limited.