BY IRENE ONYANGO.
Rwandan businessman Desire Muhinyuza has won the battle for a Sh400 million payment solution firm Stay Online Ltd (SOL) after a judge ruled ruled that the company belongs to him.
High Court Judge Alfred Mabeya ruled that Muhinyuza is the beneficial owner of the firm having initiated its registration and sent money for the company’s regulation process.
The Judge further ruled that Kenyan Kirimi Koome committed fraud by not filing the form for beneficial ownership properly at the time of the incorporation of the company.
The court said the USD 100,000 that the Kenyan partner demanded was without basis and not for tax as earlier alleged by Koome.
“The 1st defendant (Koome) committed fraud by not filing form for beneficial ownership. No tax was paid out of that money. The same is recovered from the 1st defendant, ” ruled the judge.
The court declined to award the Rwandan investor compensation for damages saying he failed to prove the claim.
In a double blow for Koome, the judge directed him to cease claiming ownership of the firm and refund the USD 100,000 that was paid to his account based in Meru for payment of taxes.
The Rwandan commenced on 18th March this year seeking to compel the Registrar of companies to rectify the registration of the company by deleting Koome’s name as the director and shareholder of Stay Online Kenya.
Muhinyuza informed the court that Koome had been appointed to incorporate the company as an agent, after which he was required to resign as a director of being paid for the services.
He narrated to court that he thought of expanding his business that had commenced in Rwanda to other Africa countries including Kenya, Uganda,Tanzania and Zambia.
Through a friend and an employer, an E-commerce manager at Equity Bank Rwanda, Patrick Gakuba, Koome was appointed as a Kenyan representative for purpose of registering the company, pending acquisition of his business permit in Kenya.
The court determined that Koome became evasive and unwilling to answer questions put to him.
Further, it was noted that unlike Koome, Muhinyuza answered all questions presented him with ease and willingly, even under intense cross examination by Koome’s lawyer.
