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Ruling boosts ex-MP’s bid to reclaim estate

By | December 1st 2009 at 00:00:00 GMT +0300

By Nancy Akinyi

Former Gatundu MP Ngengi Muigai got a reprieve in his bid to reclaim Sh693 million-coffee estate he lost through a public auction three years ago.

Commercial Court judge Joyce Khaminwa issued a temporary order stopping the alleged buyer of the coffee estate — Bidii Kenya Ltd — from taking possession pending the determination of the suit.

The judge, in her ruling, said Mr Muigai stood to lose greatly if an injunction was not given.

Muigai, through advocate Gichuki King’ara sued Kenya Commercial Bank (KCB) for disposing of the said estate at an alleged throw away price of Sh70 million to Bidii Kenya Ltd in 2007.

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Muigai said he guaranteed his 443-acre-estate as security for an overdraft facility to KCB in favour of a brother company Benjoh Amalgamated Ltd.

He argues he does not understand how the guaranteed sum of Sh11.5 million moved up to Sh70 million.

The court papers state that other than the guarantee, Benjoh Amalgamated charged to the bank two properties in Nyandarua District valued at over Sh46 million.

Mr King’ara argued he did not understand why the bank first proceeded to sell the guarantors’ security instead of realising the borrower’s securities. He said the two securities were enough to offset the claimed amount adding that the alleged auction and sale was not warranted.

He noted that Bidii Kenya Ltd should be stopped from taking possession of the said estate pending hearing and determination of the dispute

The lawyer argued it was in the interest of justice that the court comes to Muigai’s rescue because all that he holds to is the right of possession in the meantime.

Gatundu Ngengi Muigai Kenya news Bidii Kenya Ltd Kenya Commercial Bank
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