Uhuru’s kin make 15th attempt to reclaim Sh3 billion land auctioned by KCB
After years of struggling to save a 443-acre tract of property, former President Uhuru Kenyatta’s relatives Kung’u and Ngengi Muigai won’t give it up.
Kung’u reapplied for the land, which KCB used as collateral 32 years ago, on Monday.
The two brothers are on their 15th attempt to save the Kiambu farm.
Kung’u wants the Court of Appeal to revisit its 2017 ruling.
Kyalo Mbobu told Justices Asike Makhandia, Francis Tuiyott, Kathurima M’inoti, and John Mativo that his client discovered that Gideon Meenye did not sign agreement for Benjoh Amalgamated Enterprise’s land sale on May 4, 1992.
According to him, the Court of Appeal overturned High Court judge Joyce Khaminwa’s order forcing KCB to reveal account information, sealing Kung’u’s fate.
Mbobu said Meenye swore an affidavit that he was not engaged by Kung’u and did not appear in the case since he was not representing Benjo.
Kung’u complained that his farm was auctioned for Sh70 million to repay the loan despite being worth Sh3 billion.
He indicated his loan account operation research had failed.
His client wants the court to right a wrong, Mbobu added. No High Court record shows consent for the sale, he claimed.
“It is a travesty of justice to allow a judgment of this court to stand if there is no record. Why has it not been produced?” posed the lawyer.
He said then High Court judge Erastus Githinji issued consent orders when his client knew it didn’t exist.
In response to judges Kantai, Kathurima, and Makhandia’s question about why it took more than 20 years to raise Meenye’s concern, Mbobu argued the court should reopen the case even if the discovery was late.
Kung’u contested the December 15, 2017 judgement by judges Roselyn Nambuye, Asike Makhandia, and Kathurima M’inoti.
High Court Judge Freda Mugambi recently ordered Kiambu County Police Commander Michael Muchiri to help Bidii Kenya Ltd. evict Uhuru’s cousins from the land within seven days.
17 years after buying the house at auction in 2007, Bidii has never been able to enter.
KCB lawyers Phillip Nyachoti and Issa Mansur asked the five justices to reject the application.
Nyachoti stated that Kung’u inappropriately exercised the court’s powers because he had not uncovered a clerical or mathematical error in the 2017 judgement to fix.
He added that Kung’u’s allegation that the land is worth Sh3 billion may not be accurate when KCB auctions it.
He said the case was a misuse of court procedure because the Supreme Court had clearly ruled that the consent was legitimate.
“They do not explain why it took all those years for them to file an application on the consent. The application before you is incompetent, lacks merit and therefore should be dismissed with costs,” said Nyachoti.
However, Mansur maintained the first judgement was in 1998. He claims the second judgement was in 2017.
Mansur stated that Justice Isaac Lenaola, currently a Supreme Court judge, heard a separate case in 1999. Lawyer says Kung’u should have highlighted Meenye’s problem then.
Kung’u did not mention Meenye when he appealed to justices Makhandia, M’inoti, and Nambuye, according to the lawyer.
Justices Nambuye, Makhandia, and M’inoti unanimously ruled that KCB had a right to sell the land and that the actions against it addressed the same issue as the court’s decision.
“Benjoh cannot therefore argue that KCB exercised its right of sale over the wrong property. The said property had been charged to secure the loan and was sold upon default,” the judges ruled.
Kung’u’s firm Benjoh has followed practically all legal options and used incredible legal cleverness and sophistry to get his cases against the lender considered by the Supreme Court.
USAID loaned Kenyans money under the Rural Projects Enterprise Programme, operated by KCB and other banks, in 1988.
On April 12, 1989, Benjoh requested a Sh18.6 million loan to export flowers.
KCB recommended the project and loaned Benjoh 443 acres after a feasibility study. Muiru Coffee Limited, controlled by Kung’u, guaranteed the debt.
Benjo defaulted on the debt, prompting the bank to auction the property for Sh13.1 million.
The lender halted the auction on May 4, 1992, after Benjoh recognised its debt and promised to repay in three months.
It broke its promise, causing KCB to auction the land on January 23, 1993. Benjoh blocked the auction in court.
Undaunted, the lender organised another auction on June 26, 1996, but Muiru filed another claim against Benjoh and KCB, but the case was dismissed because the land had already been sold.
In 1997, Benjoh again hurried to court a day before the sale and got orders prohibiting it.
It also reopened the 1992 case, which was concluded by KCB not selling the land to settle its obligation.
As KCB’s records showed no debt, Benjoh sought the court to set down the consent orders and release the title. Lost the case.
The firm and KCB fought two constitutional proceedings in which Benjoh claimed its loan account was improperly administered.
It aimed to force the Director of Criminal Investigations to investigate.
Muiru claimed the auction violated its property rights in the second lawsuit. It requested that the court declare the auction invalid and return the title.
After many legal fights, KCB sold the property to Bidii Limited for Sh70 million on September 19, 2007.
Benjo and Muiri sued the lender and new owner again to annul the deal.
After a year of litigation, the case was dismissed again, but the judge ordered KCB to give Benjoh the debt statements to terminate the fighting.
It didn’t.
Benjoh challenged the advanced loan and statements again in court, despite earlier litigation.
The firm sued KCB for contract breach and Sh2.2 billion in damages.
Benjoh counter-sued to strike out the defence after KCB urged the court to dismiss the case.
The firm failed to prove it served KCB with court papers, thus the Court of Appeal dismissed the counter-claim.
After many court cases to save the Sh3 billion land, Benjo left with nothing.
June 21, 2024 will see the five judges’ verdict.
In a separate Ngengi case, High Court judge David Majanja prevented police from arresting KCB personnel.
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Uhuru’s kin make 15th attempt to reclaim Sh3 billion land auctioned by KCB
