House boss sued over Sh48m debt

By Nancy Akinyi

Former State House Comptroller Abraham Kiptanui is being pursued for a Sh48 million loan he allegedly borrowed more than 20 years ago.

Pan African Bank Ltd, now in liquidation, says Mr Kiptanui borrowed money, made payments to third parties and drew cheques on his account for more than Sh32 million.

The bank also claims that in addition to the above claim, in 1988, he took a Sh14 million loan through a company associated with him — BMA Investment — and another Sh2 million.

The claimed amount stood at Sh48,756,303 as at January 1997 and attracts an interest at the rate of 18 per cent per annum.

An officer at Central Bank of Kenya’s Deposit Protection Fund Hannington Elly told Commercial Court judge, Justice Joyce Khaminwa that the amount in question has not been paid.

Mr Elly, who was the first witness against Kiptanui, told the court how shareholding began between the defendant and the bank and how the financial institution opened for him an overdraft account.

He narrated how Kiptanui borrowed money and other payments from the bank, which he has not repaid.

Mr Kiptanui’s advocate will cross-examine the witness on July 24 when hearing resumes.

In his defence, Kiptanui denied borrowing any money from the bank.

Through AH Malik and Advocates, he said all purported loans or monetary advances are imaginary and therefore a nullity.

He has challenged the bank to table before court tangible evidence showing how the alleged borrowings in relation to the Sh48 million took place.

He said he has never requested for such loans as claimed by the plaintiff adding that the court should not entertain such a claim.

Mr Kiptanui says the suit is an abuse of the court process and wants it struck out.