A company owned by a relative of President Uhuru Kenyatta is seeking compensation of Sh2.3 billion from the Kenya Commercial Bank (KCB) for breach of contract.
Lawyer Philip Nyachoti told three judges of the appeal court Justice Milton Makhandia, Justice Kathurima M’Inoti and Stephen Gatembu that Benjoh Amalgamated Ltd is demanding to be paid the money over alleged breaches committed by the bank.
KCB has appealed against a decision of Justice Joyce Khaminwa (now deceased) that the bank manufactured a statement of account in respect of Benjoh when it demanded a payment of over Sh70million.
The bank had advanced a loan to Benjoh in 1989 to finance a flower project in Nyandarua County.
Benjoh which has been litigating since then says the bank failed to complete the loan terms leading to the collapse of the flower project.
The bank moved to auction the property of Benjoh leading to a lithargy of suits which ended up in the selling of Muiri Coffee Estate owned by a former assistant minister Gengi Muigai.
Muiri had secured Sh11.5milion for Benjoh from the bank.
Both Capt Kung’u and Mr Muigai are relatives to President Uhuru Kenyatta.
The late judge (joyce khamiwa) had in a ruling established that KCB did not maintain a proper record of accounts for Benjoh and that the monies it was seeking were fraudulent.
When the bank failed to get repaid by Benjoh it auctioned Muiri Coffee Estate.
The farm was bought by Bidii Kenya Limited.
Bidii has not been able to move into the farm thereby resulting to filing a case to compel Muiri quit the farm.
KCB has appealed against Justice Khaminwa’s judgement who said it is not known how the bank arrived at the amount of Sh70 million it is demaning from Benjoh.
The judge said the bank statement produced before her by the bank are forgeries.
Three appeals pitting KCB , Benjoh , Muiri and Bidii Kenya Limited which all stem from the sell of Muiri Estate valued over Sh760 million have been consolidated.
Benjoh says it did not know how much money was disbursed to suppliers of the flower project and how much cash was advanced to it.
In her ruling the deceased judge wondered how the interest of Sh3.4 million jumped to Sh44million within eight months.
KCB had asked the late judge to dismiss the case by Benjoh seeking the accounts, saying the issue had been revisited in 18 previous cases.
Benjoh says the amount demanded by the bank between Mey 9,1996 and May 9,2006 was Sh143,844,249.59.
Benjoh is asking the court of appeal to dismiss appeal by KCB.
The appeal did not proceed since one of the judges disqualified himself.
