BY SAM ALFAN.
An Egyptian developer have moved to court seeking to set aside orders issued freezing his two Bank accounts of disputed Sh134 million in a botched housing deal.
Elsaei Waseem Ahmed Ahmed wants the High Court to suspend the enforcement or implementation of the orders granted on 3rd December, 2024.
The developer further wants the court to direct or compel Diamond Trust Bank to immediately unfreeze his shilling and dollar bank accounts, and allow him to run or operate the accounts.
“The freezing orders have denied him and his client’s access to their funds, constituting a breach of their constitutional right to property under Article 40 of the Constitution of Kenya,” the Egyptian told the court through his lawyer.
The Egyptian adds that the claim to freeze the business accounts would result in severe prejudice his business, including halting construction works, delaying payments for services already rendered, and affecting the ability to meet obligations to other clients.
Last year, Justice Njoki Mwangi froze the bank accounts at DTB bank belonging to the Egyptian, pending the determination of a petition filed by Rwandese Jean Baptiste Uwemeye and his children.
Baptiste and his children sought a court injunction restraining Elsaei from transferring, dissipating, or otherwise disposing of any funds or assets traceable to him.
Baptiste, Kelvin Rakundo and Ken Stella Teta also sought court orders to compel the Directorate of Criminal Investigations (DCI) to investigate Elsaei’s conduct regarding the alleged fraudulent acquisition of USD 1,040,000 (equivalent to Sh.134,166,576.96) from the him and the report be filed in court.
But the developer says the funds in the accounts which the Rwandese sought to freeze are business funds that are critical for his ability to pay salaries to employees, contractors, and meet ongoing financial obligations related to the construction of other ongoing projects.
He claims that he was not accorded a chance to be heard before the orders freezing its bank accounts were issued.
According to Elsaei, the funds alleged by the Rwandese investors to have been paid have already been fully utilized more than two years ago, for the development of the building that the Rwandese agreed to purchase off-plan.
The funds in question, he said, were used to develop the property, as per the agreement between the parties.
He adds that the building in question is a 150-unit apartment complex that has been fully constructed, sold, and occupied by other clients.
“The only delay in handing over the property to the Rwandese has been caused by changes they requested after the completion of the building, which include high-end finishes and the addition of a bar in a residential area, which clashed with urban planning policies,” Elsaei told the court.
He claims that the Rwandese investors are misleading the court by failing to disclose that the building is complete, and their claim that he has not fulfilled his obligations is misleading, as the property has been fully developed and sold to other clients.
He further argued that the freezing of his business accounts will cause undue hardship, as it will prevent him from completing ongoing projects and paying employees, which will harm not only him but also clients who depend on his services.
The Egyptian added that there have been several communications, including out-of-court settlement discussions, where he informed them that they could sell the property and be compensated for their funds.
“Despite this offer, Rwandese investors have continued with the current legal action without disclosing these facts to the Court,” he claims.
According to him, Rwandese investors claims fail to account for the expenses incurred by him, including agency fees (3% of the transaction value) and other out-of-pocket expenses related to changes requested by them, which remain unpaid.
