Kyalo Mbobu: Church elder stuck in debts, lawsuits and betrayal

The late lawyer Mathew Kyalo Mbobu. [Courtesy] Slain lawyer Mathew Kyalo Mbobu was deeply in debt. He faced court cases filed by several companies accusing him of defaulting on loans and withholding client funds. Investigations by The Standard can confidently reveal that Mbobu had been blacklisted by banks and turned to shylocks, micro finance firms, payday lenders and credit companies. In many cases, the interest on these loans swelled to nearly ten times the original amount. In one instance, Mbobu was sued by a church-based organisation for failing to remit the full proceeds from a land sale. The civil case, E284 of 2023, was determined on March 13, 2025 by the Milimani Commercial Courts, with judgement entered against him. In December 2021, CORAT Africa, a Christian organisation, engaged Mbobu to oversee the sale of two prime parcels of land in Karen. The buyer had already been identified; the organisation simply required legal guidance to avoid legal pitfalls. Identifying with Mbobu as a fellow Christian, the organisation entrusted him with the transaction involving LR No.7777/8 and LR No. 7777/9 jointly valued at Sh250 million. Mbobu was set to earn Sh8,665,091.70 in legal fees after preparing the sale agreements. The purchase price for the two parcels was paid in installments to his firm, which was to hold the funds in trust pending completion. By January 6, 2022, the buyers had deposited the full Sh250 million, and the transfer instruments were registered. However, once the money hit the account, Mbobu began a game of cat and mouse. Withheld cash He eventually released Sh153 million but withheld the remaining Sh97 million. After repeated demands and delays, CORAT Africa took him to court.The organisation demanded the unpaid Sh97 million plus 15 per cent interest from April 2022 until settlement, penalties and interest of Sh2.6 million for delayed capital gains tax payment, Sh8.1 million in loans and overdraft interest, Sh4.9 million in lost investment income and costs of the suit. In court documents seen by The Standard, Mbobu admitted his firm received the money but claimed he was entitled to retain Sh97 million as legal fees. Founded in 1975, CORAT Africa, short for Christian Organisations Research and Advisory Trust of Africa, seeks to strengthen churches and and faith-based organizations across the continent by improving their management capacity. Mbobu entered appearance on July 27, 2023, and later filed a defence and counterclaim dated August 9, 2023. He admitted that an advocate-client relationship existed and that he had received the purchase price on behalf of CORAT Africa, part of which is not remitted. However, he denied withholding the Sh97 million unlawfully, insisting he was retaining the funds as lien for legal services rendered to the organisation. The court noted that while an advocate's lien permits the retention of client property as security for unpaid fees, "holding Sh97 million as lien for fees far exceeding the disputed amount violated the principle of proportionality, causing prejudice to the plaintiff". In its final orders, the court directed Mbobu to pay CORAT Africa Sh97 million plus interest, while allowing him to retain Sh8.7 million as security for fees, subject to taxation. The ruling was delivered by Justice F Gikonyo. Five years ago, Mbobu borrowed Sh10 million from a shylock but soon defaulted on repayments. Though he sporadically made payments totaling to Sh24 million, he eventually gave up. Investment flopped A close friend who tried mediating between the two said Mbobu stopped paying altogether, causing the loan to balloon. By the time of his death two days ago, he reportedly owed the shylock Sh72 million, The Standard has learnt. In another debt saga, Mbobu borrowed Sh17million from a Somali shylock to purchase agricultural land and venture into the flower business. The investment flopped, leaving him unable to repay. The loan, initially informal and sealed only with handshake, later spiraled to Sh52 million with interest."It was supposed to be an agricultural investment, but things didn't work out," a close family member said. Kyalo was also in court under case number 144 of 2023 at the Milimani Commercial Courts fighting off the anticipated auction of his property by a company, Hypac Limited. In a ruling delivered on November 24, 2023, the Nairobi High Court granted an interim injunction for Kyalo Mbobu and Riviera Estates Ltd. The injuction restrained Hypac Investments Ltd from selling off a piece of land Kyalo had used as collateral when taking a loan. The land, registered as Title Number I.R 83020, had been transferred to Hypac Investments as security for a loan. The loan was taken in January 2021 by Kyalo, who signed as a director of Riviera Estates and sought a loan of Kshs 11 million. The agreement included a flat 15% monthly interest rate and a weekly late payment penalty of 5 per cent. By the time of his death, the loan had grown to Kshs 70 million. In the similar case, a client sued Mbobu early this year, demanding Sh40 million. The businessman had initially taken a dispute with a partner to arbitration, which was later settled. The other party paid Sh40million to Mbobu's law firm for onward transmission, but he failed to release the funds. The client sued him in August 2024, and the case, filed at the Milimani Commecial Courts, was still pending when the lawyer was assassinated. The Standard is withholding the names of those involved in the lawsuit for legal reasons, as naming them could imply a link to the lawyer's killing. Meanwhile, Chief Justice Martha Koome has mourned Mbobu, saying that they shared classes at the University of Nairobi and Kenya School of Law. "I knew him as a humble, generous and professional person in all his dealings as an advocate. His life reflected the finest traditions of the Bar, anchored in service, fairness and commitment to justice." According to Koome, the assassination was not only a personal tragedy to his family but a grievous assault on the values of justice, democracy and the rule of law that he upheld. She called on DCI to probe the killing by pursuing all leads to ensure the perpetrators are brought to book. "I further urge our security agencies to strengthen measures that guarantee the safety and security of all citizens, especially in the light of growing concerns over gangland-style killings," the CJ said. Koome regretted that Mbobu's murder followed the brutal assassination of Kasipul MP Ong'ondo Were on April 30, 2025, raising security concerns that need to be addressed urgently.

Kyalo Mbobu: Church elder stuck in debts, lawsuits and betrayal

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