Waititu woes mount as properties risk auction in Sh40m loan dispute

Former Kiambu Governor Ferdinand Waititu leaves a Milimani court on Thursday, February 13, 2025. [Collins Kweyu,Standard] Former Kiambu Governor Ferdinand Waititu's troubles appear to be mounting, with his two Nairobi properties now at risk of auction over a Sh40 million loan dispute. Waititu, who is serving a 12-year jail term after being found guilty of corruption charges, has moved to the High Court seeking to stop Pelican Credit Limited from selling his two properties following a fallout over a loan agreement. In his case, filed through lawyer Chris Mutuku, Waititu claimed that Pelican agreed to lend him Sh30 million on condition that he would provide suitable security. In what he described as alleged predatory lending, Waititu claimed that although the firm advanced him the money, it never furnished him with a copy of the loan agreement or the charge document. He stated that he only saw the documents when Pelican filed a case before the magistrate's court, where it is seeking to sell his properties to recover the loan. Waititu's lawyer contended that the loan had since been repaid, adding that although there had been a slight default, his client had allegedly resolved it. "In this regard, the plaintiff avers that they have repaid more than Sh9.8 million of the loan, yet despite this, the defendant is demanding payment in excess of Sh40 million from the plaintiff. The plaintiff avers that this demand is improper, illegal and extortionist," argued Mutuku. He stated that following the default, the lender went ahead to impose penalties and interest on the outstanding amount. According to the lawyer, the sum now being demanded exceeds what had been agreed upon. He added that Waititu only learnt that his properties were being sold through social media. Mutuku further claimed that Pelican had violated the former governor's right to information, as it had not served him with the required 90-day written notice. "The plaintiff avers that the purported auction is unlawful, irregular and unprocedural for, among others, the infraction of the law, failure to adhere to the proper procedure stated under the Lands Act 2012, including but not limited to failure to issue the charger with the 90-day notice in writing," argued Mutuku. According to Mutuku, the firm was first required to disclose how much Waititu had failed to pay and to notify him in writing. It should also have given him a timeline within which to clear the amount and informed him of the consequences of failing to do so. He said that Waititu became aware of Pelican's intention to auction the properties through rumours, after which he discovered a case that had been filed before a lower court. He further alleged that the lender intends to sell the properties for Sh40 million, even though their actual value stands at Sh50 million, claiming that they have been grossly undervalued. "The plaintiff's undervaluation is part of a well-orchestrated scheme by the defendant to defraud the plaintiff, principally because there was no rational explanation for real estate in Nairobi to depreciate, within a few months, by more than half," argued Mutuku, adding that Waititu's properties should instead be appreciating in value. He further claimed that the valuation was done without his client's involvement. He asserted that the entire process of disposing of the properties over the loan was marred by illegalities. He now wants the court to stop the intended auction and to compel Pelican to compensate him for the alleged breaches. At the same time, he is seeking a declaration that any sale of the two properties is null and void. Waititu remains behind bars after failing to secure Sh53.3 million bail terms imposed by the Anti-Corruption High Court. He was required to obtain a bank guarantee covering the full amount if he was to be released.

Waititu woes mount as properties risk auction in Sh40m loan dispute

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Waititu woes mount as properties risk auction in Sh40m loan dispute

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