Five Appellate Judges to hear bank's dispute with Kenyatta's relative over coffee farm
SEE ALSO :KCB face Nondies in Kenya Cup“The case is likely to affect several decisions that have been made by various courts relating to the subject matter. And in light of the huge number of cases likely to be affected by the outcome, we request that it be referred to Justice Ouko to constitute a five-judge bench,” said Mr Mbobu. The dispute relates to 434-acre Muiri Coffee Estate in Thika which was sold through public auction after Muigai’s company, Benjoh Amalgamated Ltd, failed to repay a loan borrowed from KCB. He had in 1988 borrowed Sh11.5 million from the bank and used the coffee estate as collateral. After defaulting to repay the loan, KCB moved to auction the estate to recover the outstanding loan. The estate was sold to Bidii Kenya Ltd after a public auction conducted by Watts Enterprises, but Muigai claimed the sale was fraudulent, arguing that although the farm was valued at more than Sh700m at the time of auction, KCB auctioned it at only Sh70m. He filed several suits in attempt to stop the sale, but was unsuccessful. The suits were dismissed by the court with some ending up at the Court of Appeal, but suffered the same fate.
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