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What is a credit balance?


The second observation above would not be true for an increase/decrease system. For example, if services are provided to customers for cash, both cash and revenues would increase (a “+/+” outcome). On the other hand, paying an account payable causes a decrease in cash and a decrease in accounts payable (a “-/-” outcome). Finally, some transactions are a mixture of increase/decrease effects; using cash to buy land causes cash to decrease and land to increase (a “-/+” outcome). In the previous chapter, the “+/-” nomenclature was used for the various illustrations. Take time to review the comprehensive illustration that was provided in Chapter 1, and notice that various combinations of pluses and minuses were needed.

which account typically carries a credit balance

The ability to split something apart and talk about the two sides separately, while understanding that it is still a single thing, is essential to understanding accounting. You can call your card issuer and arrange to have a check sent to you in the amount of the credit balance. Or, you can leave the credit on your account to pay for future charges.

Still have questions about credit cards?

Going forward, one needs to have instant recall of these rules, and memorization will allow the study of accounting to continue on a much smoother pathway. Inventory is important because it represents a company’s investment in products that have not yet been sold. If a company’s inventory becomes too high, it may tie up too much capital and cause financial problems.

which account typically carries a credit balance

Accounts receivable management is the process of minimizing the risk of nonpayment and maximizing the collections from customers within that one-year time frame. Accounts receivable is the portion of a company’s revenue that is due from customers. The phrase “accounts receivable” is usually used in reference to the money owed to a company by its customers for goods or services that have been delivered but not yet paid for. Carrying a credit card balance might be necessary at times, but it generally won’t help you build credit. It might end up costing you money if it becomes credit card debt — and that can pull down your credit scores.

What is credit balance in ledger?

Bear in mind that each of the debits and credits to Cash shown in the preceding illustration will have some offsetting effect on another account. For instance, the $10,000 debit on January 2 would be offset by a $10,000 credit to Accounts Receivable. The process by which this occurs will become clear in the following sections of this chapter.

  • Those might be worth it to you, but if a balance transfer offer is your main motivation for applying, be sure you are aware of fees.
  • The term provision may not sound familiar to you if you are not familiar with bookkeeping and accounting.
  • Therefore, there would be no need to know anything about inventory.
  • This is different from the statement balance, which is the amount of money you owe at the end of a billing cycle, or the minimum monthly payment you must make to keep your account in good standing.

Expenses are recorded when they are incurred, no matter when the related cash may be paid out. Accrual-basis accounting provides for a proper matching (that is, comparing within a given reporting period—usually a month, a quarter, or a year) of revenues and expenses. It attempts to measure fairly the economic impact of financial activity during a given period rather than simply keeping a tally of cash received and disbursed. It is now apparent that transactions and events can be expressed in “debit/credit” terminology. In essence, accountants have their own unique shorthand to portray the financial statement consequence for every recordable event. This means that as transactions occur, it is necessary to perform an analysis to determine (a) what accounts are impacted and (b) how they are impacted (increased or decreased).

Permanent and Temporary Accounts

It is beyond the scope of this chapter to cover all of the differences. This information may include links or references to third-party resources or content. We do not endorse the third-party or guarantee the accuracy of this third-party information. We’re the Consumer Financial Protection Bureau (CFPB), a U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly.

which account typically carries a credit balance

Accounts that normally have a debit balance include assets, expenses, and losses. Examples of these accounts are the cash, accounts receivable, prepaid expenses, fixed assets (asset) account, wages (expense) and loss on sale of assets (loss) account. Many people wrongly assume that credits always reduce an account balance. However, a quick review of the debit/credit rules reveals that this is not true. Probably because of the common phrase “we will credit your account.” This wording is often used when one returns goods purchased on credit. Carefully consider that the account (with the store) is on the store’s books as an asset account (specifically, an account receivable).

Offsetting the asset account with its respective contra asset account shows the net balance of that asset. A credit balance on your billing statement is an amount that the card issuer owes you. … If the total of your credits exceeds the amount you owe, your statement shows a credit balance. A balance transfer credit card can be part of a smart, disciplined strategy for paying off debt. It’s important to keep track of exactly what the terms are and when the rate ends. Paying less interest on credit card debt can allow you to pay down the principal more quickly so you can get out of debt sooner.

  • Temporary accounts (or nominal accounts) include all of the revenue accounts, expense accounts, the owner’s drawing account, and the income summary account.
  • Expenses are recorded when they are incurred, no matter when the related cash may be paid out.
  • In our first example, we represented an Accounts Receivable to the department store.
  • On the customer’s books one would debit (decrease) a payable account (liability).

Temporary accounts (or nominal accounts) include all of the revenue accounts, expense accounts, the owner’s drawing account, and the income summary account. Generally speaking, the balances in temporary accounts increase throughout the accounting year. At the end of the accounting year the balances will be transferred to the owner’s capital account or to a which account typically carries a credit balance corporation’s retained earnings account. Most people are familiar with the concept of a credit balance on a credit card account. When you make a purchase with a credit card, the credit card issuer extends you a loan that you will need to pay back over time, plus interest and fees. You can think of this as a line of credit that you can draw on as needed.

Definition of Debit Balance

Another way to understand what accounting is asking of us is to compare an entity to a coin. Contrary to what some may think, not-for-profit organizations must earn profits. Otherwise, they will not be able to replace worn-out assets or grow to meet increasing demand for their programs. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance.


Dandora dumpsite in Nairobi.


Nairobi city county can now go ahead with plans to generate power at the Dandora dumpsite after the procurement watchdog dismissed a request for review of the multi billion deal.

The Public Procurement Administrative Review Board dismissed an application by Enercon Energy Consultants Limited, after the county the tender was awarded to China National Electric Engineering Co. Ltd.

The Board chaired by Irene Kashindi and members including Isabel Juma, Joshua Kiptoo, Hussein Were and Dr. Susan Mambo declined the request for review saying the application was filed late.

Further, the board ruled that the tender was under the public private partnership hence beyond its jurisdiction.

“In totality of the foregoing, the Board must of necessity down its tools at this stage as it cannot not proceed to address the other issues framed for determination. The effect of this finding is that Enercon’s request for review is for striking out,” said the board.

The Board noted that in sourcing for the private party in the subject tender, the county government obtained approval to use the Specially Permitted Procurement Procedure under section 114A of the Public Procurement and Assets Disposal Act (PPADA).

The Board has also noted that several provisions of the PPADA were invoked in the procurement process.

Board members added that the fact that various provisions of the PPADA were invoked in the process, does not clothe it with jurisdiction.

Enercon contended that the PPP Act does not apply given that the Respondents did not comply with the PPP Act in the process. It’s the Board’s view that consideration of this issue will be outside the Board’s jurisdiction.

The county government advertised the tender in January for design, financing and maintenance of waste to energy plant at the Dandora dumpsite using solid waste.

The company pleaded with the Board to nullify the contract arguing that process did not follow the procedure and that an official of the tender committee was compromised.

“A declaration that Nairobi County Government failed to adhere and have flouted the criteria and procedures under the Tender Document and the provisions of the Act and Regulations 2020 in awarding Tender  for design, finance, maintain and transfer a “waste to energy” processing plant at Dandora Dumpsite, Nairobi/Block 86/36 to China National Electric Engineering Co. Ltd,” sought the company.




A Nairobi court has frozen the bank accounts of two air charter services companies associated with a city trader over allegations of money laundering.

Milimani anti-corruption chief Magistrate Eunice Nyutu allowed the application by Assets Recovery Agency to probe the accounts of Cullinan Private Jet Corp and GLO-Jet International.

The agency was allowed to investigate the account at I&M and Eco banks for three weeks over claims of illegal bank transactions amounting to Sh18.9 million.

The court also allowed the police to investigate the bank account of Ajeetkumar C Shah held at I&M bank.

“The holders of the bank accounts in question are being investigated for the offences of money laundering contrary to section 3 as read with section 16 of proceeds of Crime and Money launder Act, ” the investigating officer informed the court.

Nyutu directed the aircraft owner and Shah to supply the investigators with all relevant documents on the accounts including the account opening documents, statement of cash flow since it was opened to date, cheques and cash deposits and withdrawals slips, and RTGS/ SWIT transfers or any other documents, which may assist in the ongoing probe.

ARA through an investigator Alfred Musalia submitted that the agency received intelligence reports that the holders of the bank accounts had transacted funds suspected to be proceeds of crime.

Aggrieved by the court orders, the companies through lawyer Cynthia Ogema have filed an application seeking to set aside the freeze order, saying they were obtained irregularly thereby crippling his business.

“The ex-parte orders issued herein have negatively affected their business, thereby forcing the international board of directors to call for an urgent meeting at Fort Lauderdale, Broward county, Miami, United States of America,” the lawyer said.

According to Ogema, the two air airlines are highly revered conglomerates with strong international links and of good reputation and standing in the international community

She said the airlines provide private cargo and passenger air charter services, as well as property investment under the Meriton Brand which is a Multi-billion US Dollar Australian company that was established in 1963.

Further, Ogema claims that the court orders have sparked discussion seeking approval to immediately shut the operations of the two air companies in Kenya and relocate the same to Johannesburg, South Africa- a move that will cost the country revenue and loss of jobs.

In an affidavit filed in court by GLO- Jet International limited CEO Geoffrey Somoni Birundu wants the orders vacated claiming that the company is providing exclusive private air charter services to niche and affluent foreign and local clients.

The Company in Kenya is a subsidiary of GLO- Jet International limited, which is based in Orlando Florida in the USA and which constitutes a large network of global conglomerates operating in at least 47 countries across the world.

He adds that the company is in the business of providing exclusive private air charters services to niche and affluent foreign and local clients. 

“As part of its infrastructure to providing these services, Glo-jet International ltd is housed at the upmarket Meriton Senteu Plaza located along Galana/Lenana road which hosts their offices, a fleet of luxury cars and a memorandum of understanding with Penial Air to supply luxury aircraft for the company,” says the CEO.

She added that the company is moving huge business with a turnover of billions of dollars annually.

The local branch of the multi-national company which is based at the up market Meriton Senteu Plaza located along Galana lenana road in Nairobi hosts offices, A fleet of luxury cars and a signed memorandum of understanding with Penial Air to supply luxury aircrafts for it’s clients.

ARA might go after the assets as while. In most cases, the agency files a preservation application in the High Court after obtaining orders to freeze accounts or assets before Magistrate Court.

The CEO further states that sometimes in the year 2021, Glo-jet International ltd opened a Kenya shilling and US Dollar accounts with Eco-Bank on the implied and express understanding that the company would comply with all relevant laws relating to the operation and management of a bank account and Eco-Bank  would allow us accounting access to manage the account.

The company claims they have managed and or operated the said accounts to receive money from our holding company in the United States, payments from clients and also to make payments and/or transfers for staff salaries, service providers, payment of goods, per diem for air Pilots and Crew and to pay critical utility bills.

The documents further states that on 14th August, 2023, we issued an invoice for the sum of US Dollars 55, 632.04 to one of our business partners and customers, Cullinan Private Jet Corp, to intended  3rd Respondent herein for air charter services that we provided to their client. 


Chief registrar of Judiciary Anne Amadi.


The Appellate Court has certified as urgent an application by a Dubai-based gold trading company as urgent as it seeks to overturn a decision absolving chief registrar of Judiciary Anne Amadi of any blame in a gold fraud.

Bruton Gold Trading LLC moved to the Court of Appeal after the High Court unfroze the bank accounts of Amadi saying she was not involved in the day to day running of the law firm even though it was registered in her name.

The firm accuses Amadi, her son Brian Ochieng’ and four others of defrauding it of $742,206 1,500kg of gold bars in 2021, has now taken the dispute before the Court of Appeal.

The company wants in the application the court to issue an injunction restraining Amadi, her son and his partner Andrew Kiarie or their agents from accessing, operating and or withdrawing funds from domiciled at ABC Bank, Green House Mall, Nairobi.

The bank account, registered in the name of Amadi & Associates, Advocates was initially frozen only for the freeze to be lifted following an application by Amadi saying she resigned from the law firm after joining the Judiciary in 2014.

“The Court be pleased to Order that the personal bank accounts registered to the 1st 2nd 3rd and 5th Defendant/Respondents domicile at any bank within the Republic of Kenya, in the names the 1st 2nd 3rd and 5th defendant/ respondents, be frozen, and that no funds whatsoever, be withdrawn from the accounts without an express order of the Court pending the hearing and determination of the application,” pleads the company.

The company wants the intended appeal be heard expeditiously and on priority basis.

According to the company, Brian and the law firm, together with Ndegwa and Edward Taylor alias Mboronda Seyenkulo illegally obtained from the company $627,406.48 towards the purchase of gold, which was to be delivered in Dubai.

The directors of the gold trading company were allegedly introduced by Edward Taylor, to Daniel Kangara Ndegwa (Alias Dan Muriithi) who at the time it was alleged was an officer of Universal Global Logistics Limited (“UGL”), which entity was in the gold export business and could export gold from Kenya to Dubai.

The agreement between the parties was that Ndegwa was to deliver gold to Dubai for sale (at the company’s cost) after which sale the company would be reimbursed its total costs for export and be paid a commission of 10% of the market value of the Gold at point and time of sale.

On the understanding that UGL could facilitate the export of gold, the Applicant entered into a transaction with UGL, who were represented by the 1st Respondent’s Law Firm of Amadi and Associates, Advocates, for the export of 1,500 kg of gold bars allegedly ultimately owned by the 6th Respondent and his family from Kenya to Dubai.

A total of US$ 592,970 was sent to Amadi’s firm via bank transfer by Aeras DWC LLC, company’s sister on behalf of the company into Amadi’s law firm account, number held by Amadi and Associates Advocates at ABC Bank.
The consignment was not delivered as agreed according to Bruton Gold.


Cooking Oil at local Supermarket in Nairobi.


The High Court has lifted an order blocking the government from importing 125,000 metric tonnes of cooking oil duty-free.

Justice John Chigiti lifted the order issued in June following a petition by the Law Society of Kenya, arguing that the move would disadvantage local manufacturers, among other reasons.

“The orders issued on 30th June, 2023 granting the Law Society of Kenya leave to institute Judicial Review proceedings, and the stay of the implementation of the Treasury’s letter dated 20th January, 2023 and Commissioner’s internal circular No. 7 dated 14th February, 2023 are hereby set aside,” ruled the Judge Chigiti.

The judge further struck out the application by the lawyers umbrella body and discharged all consequential orders.

The judge said the letter dated 20th January, 2023 to the Commissioner for Customs & Border control and a Departmental Circular No. 7 of 14th February 2023, which were used by LSK in the case were illegally obtained and expunged them from the record.

The judge observed that a court that admits and determines a dispute before it based on illegally obtained evidence is a court that acts without jurisdiction.

” This court finds that it lacks jurisdiction to determine a suit on the basis of illegally acquired documents,” ruled Judge Chigiti.

The Kenya National Trading corporation moved to court through Senior Counsel Ahmednasir Abdullahi and Dennis Mosota seeking to lift the order, arguing that the move might lead the government into losses.

Ahmednasir told the court that that the orders issued on 30th June, 2023 were made without jurisdiction, in violation of Section 9(2) of the Fair Administrative Action Act, 2015; hence null ab initio.

He submitted that LSK failed to disclose to the Court the material fact that available statutory mechanisms had not been exhausted.

Lawyer Mosota told judge Chigiti that the issues in dispute relate to importation of duty-free cooking oil, pursuant to provisions of paragraph 20 of Part II to the Fifth Schedule of the East Africa Community Customs Management Act, 2004 (EACCMA), which Act has a mandatory statutory review and appeal forums–through which KNTC could agitate its grievance at first instance.

Lawyer Mosota submitted that the order in place affect persons other than the parties to the proceedings and the lifting of stay orders will not result in any prejudice to KNTC or any other party involved. In fact, it is beneficial to the public by providing access to affordable goods.

“The risk of potential loss to the applicant greatly outweighs any perceived benefit from maintaining the stay orders,” court heard.

It was his argument that the stay orders do not meet the proportionality test as it subjects KNTC to undue hardship, irreparable harm owing to the risk of perishability of the imports and the colossal financial loss.

“Orders issued on 30th June, 2023 were null ab initio since they were issued by the court without jurisdiction to the extent that they were issued following material non-disclosure of the germane facts that KNTC had not exhausted the mandatory statutory dispute resolution mechanisms; hence prematurely invoking the Court’s jurisdiction,” lawyer Mosota told the court.

He said it is trite Law that where there is an alternative remedy and especially where Parliament has provided a statutory appeal procedure, it is only in exceptional circumstances that an order for judicial review would be granted.

“The perishable nature of the applicant’s goods, edible oil, results in a substantial risk of financial loss. Further, the applicant’s irrevocable Letters of Credit issued to suppliers pose an additional financial risk, strengthening the case for setting aside the orders,” lawyer Mosota told the court.

The court heard that the freeze orders do not serve the interests of justice it does not improve the Court’s quest to do justice to the parties when the final orders will be made as Kenya National Trading Corporation (KNTC) as it will never be able to recover the loss it has incurred as a result of the stay orders.

“The effect of this is that the exemption will be declared to be null ab initio and KNTC will be under obligation to pay the Commissioner for customs and border control the amount exempted. However, should the court find that the exemption was lawful, the Respondent/Applicant will not be able to recover the costs incurred from the storage and demurrage charges which are substantial,” said Ahmednasir.


Newly court appointed Mumias sugar company administrator Harveen Gadhoke and west Kenya sugar company ltd Jaswant Singh Rai.


The newly appointed administrator for Mumias Sugar Company Harveen Kumar Manoharlal Gadhoke has declined to take up the job a month after his appointment.

Gadhoke was appointed the administrator of the troubled miller by Justice Josephine Mong’are on July 31, following the expiry of Kereto Marima’s term.

But he says in an affidavit filed in court told that he is currently serving as administrator of several insolvent companies with multiple court cases pending before the High Court.

“As a result I am unable to take up my appointment as Mumias administrator and I respectfully decline my appointment as administrator,” said Kumar while declining the appointment by the court.

The insolvency practitioner further said told the court that he only became aware of his appointment after he was served with the order of 31 July 2023. 

“Prior to then, I was not aware of the intended appointment and I was not consulted before my appointment and I did not give my consent to the appointment,” says Gadhoke.

The High Court had directed him to compile an updated list of all debts of the miller.

The judge directed the administrator to file a list of all debts as at 31st July, 2023 and which must be filed in court within 42 days from the date of the ruling.

The judge further directed Gadhoke to conduct an asset count of all property and chattels of Mumias Sugar company ltd and develop an assets register to be shared with the court and the creditors of Mumias Sugar within two months.

Former administrator and KCB appointed receiver manager PVR Rao was directed to immediately handover the affairs of Mumias Sugar company including all books of account, documents, ledgers, leases, title deeds, log books and any other document or material of whatever nature concerning the affairs of Mumias Sugar to the newly appointed administrator, with immediate effect.

Rao was ordered to immediately give access to the new administrator and file a full, accurate and comprehensive report of all activities he has undertaken as court appointed administrator of Mumias Sugar since 19th November, 2021, for purposes of handover of the affairs to Gadhoke.

In the 15 page ruling, the commercial court judge directed inspector General of Police Japhet Koome, the county police commander of Kakamega County and OCS Mumias Police Station to provide armed escort and security to Gadhoke to enable him undertake the job.

Kimeto & Associates Advocates, a creditor moved to court seeking the court to appoint an interim administrator saying she was apprehensive that in the absence of duly appointed administrator, all the other creditors stand to suffer irreparable as they are left out of the receivership which is meant to aid KCB Bank to collect its debt secured by various charges and debentures over the assets of Mumias Sugar.

The court heard that without a proper administrator duly appointed by the court to oversee the affairs of Mumias Sugar, the resulting effect is a regretful scenario where there is no officer accountable to the court for overseeing an institution that is effectively under administration.

At the same time, West Kenya Sugar company and Jaswant Sign Rai have filed applications to withdraw the cases pending in court over the Mumias Sugar Company lease saga.

The notice was filed city lawyer Martin Gitonga information the court that West Kenya Sugar Company and the Rai are discontinuing with the case.

“TAKE NOTICE that West Kenya Sugar Company Limited and Jaswant Singh Rai, the 1 and 2nd Interested Parties/Applicants herein hereby wholly discontinue and withdraw their claim in this suit,” states the notice filed in court by west Kenya Sugar company and Jaswant Sign Rai lawyer Martin Gitonga.


Embakasi East Member of Parliament Paul Ongili alias Babu Owino during misuses of firearm judgement./PHOTO BY S.A,N.


The Office of the Directorate of Public Prosecution has appealed the decision to acquit Embakasi East MP Babu Owino in a shooting incident where a DJ was seriously injured a few years ago.

Owino was freed early this week by trial magistrate Benard Ochoi of charges misuse of firearm in a case where Felix Orinda alias DJ Evolve was injured.

The court freed the MP saying the prosecution failed to prove the case against the MP.

The DPP wants the High Court to quash the decision and substitute the decision with a conviction.

In the appeal, the DPP argues that trial magistrate erred in law and fact by acquitting the MP without considering the weight of evidence and testimony adduced by the prosecution witnesses.

The prosecution also faults the magistrate saying he failed to properly consider the credible and cogent evidence adduced by the prosecution witnesses.

“The trial magistrate erred in law by failing to properly consider the provisions of section 107 of the Evidence Act Cap 80,” says the DPP.

The DPP further argues that trial magistrate erred in law and fact by finding that the ballistic expert report was inconclusive.

“Trial magistrate erred in law and fact by finding that there was no evidence of the victim having sustained gunshot wounds,” says DPP in his court documents.

Itv is also the DPP’s case that Magistrate Ochoi erred in law and fact by finding that Owino did not intend to shoot the victim.

Trial magistrate Bernard Ochoi found Babu Owino not guilty and acquitted under section 215 of the criminal procedure code.

The magistrate ruled that the prosecution failed to prove the case beyond reasonable doubt.

“Having evaluated the evidence available before me and applying the relevant test, it is my finding that the prosecution has not proved its case beyond reasonable doubt,” said the magistrate in his decision.

The court noted that the case was of great public interest that may have gone wrong during investigations and suggested that such matters should be assigned to senior and experienced officers at least in the rank of Inspector of police.

In the 32 page judgement, Magistrate Ochoi said there was no evidence presented to show the state of sobriety or otherwise of the accused in the allegation of being disorderly.

While acquitting the MP, he said that the victim(Dj Elvove) of the alleged offence denied that he quarreled with the legislator or that Babu shot him.

“There was no evidence that the victim sustained a gunshot wound that the accused intended to shoot him and the ballistic expert did not conclusively find that the accused’s firearm was the one used in the act,” observed the magistrate.

The magistrate said the Directorate of Criminal Investigation had done a shoddy work on investigating the case as the crucial evidence was not shown.


High Court Commercial Judge Alfred Mabeya who directed China Gezhouba Group to pay JTG Enterprises Limited hundreds of millions./PHOTO BY S.A.N.


A Chinese firm has been ordered to pay a local company Sh683 million for breach of contract over the construction of Sh82 billion Thwake Dam in the lower eastern.

Justice Alfred Mabeya directed China Gezhouba Group to pay JTG Enterprises Limited the amount plus interest after finding that the Chinese firm did not pay the actual excavated works as was on the site

The local firm was contracted to do excavation and support for the main spillway project, for the dam in Makueni and Kitui counties in Lower Eastern.

“In this regard, the defendant having failed to make payments for the works as were on site and as agreed in the sub-contract supplementary agreements, the defendant had breached the contract itself and the plaintiff,” the judge said.

The court found JTG Enterprises limited proved its case against China Gezhouba Group on balance of probability and the company had breached the contract between itself and JTG Enterprise ltd.

“Consequently, judgment is hereby entered for the plaintiff against the defendant as follows, special damages for IPC No. 26 for Sh. 10,623,086.15, Sh. 73,431,524/53 retention money and Sh 477,473,634/24 for unpaid excavation works, Sh. 89,844,519/19 VAT 16% and liquidated damages of Sh. 31,390,300.80 all totaling Sh. 682,763,067. Interest on Sh.682,763,067/- at court rate from the date of filing suit until payment in full,” ruled the judge in his decision.

The judge said no party can be allowed to take advantage and benefit from its own wrong, after dismissing a counterclaim filed by the Chinese company.

JTG Enterprise ltd was contracted by the Chinese firm to excavate, protection and support of the main spillway at Thwake Multipurpose Dam.  

The parties formalized the contract by filing a subcontract agreement and the terms of the subcontract were that the agreement was a fixed unit price where payments were dependent on the nature of the excavated materials.

JTG’s position was that upon commencement of the works, it noted that quantities of topographic soil layers as provided by the Chinese company did not correspond with the actual and practical conditions on the ground.

That according to the Chinese firm, there were three layers of soil, thus the soft soil materials, then the common materials and finally the concrete structures of rocks. However, that immediately after the soft soil, JTG Enterprise ltd encountered concrete structures of rock.

The discovery led to the signing of a new supplementary subcontract agreement in July 2019 which modified the earlier subcontract and it reflected the actual position on the ground.

The supplementary subcontract agreement provided that the payment rates in the Bill of quantities of the original contract wouldbe applicable and the quantities excavated would be determined based on the practical conditions at the site.

The Chinese firm payed the JTG Enterprise ltd based on the rates for common excavation rather than making payments using the provided rates for rock excavation. 

The works were completed and the defendant approved payment of Sh. 1,042,618,307.51 which was based on the quantities of topographic soil layers agreed upon at the start of excavation leaving a balance of Sh. 477,473,634.24.

JTG Enterprise ltd faulted the Chinese firm for failing to settle the interim payment certificate (IPC 26) for Sh. 10,623,086.15, refusing to refund retention of money of Sh. 73,431,524.53 and 16% VAT on outstanding contractual amounts. 

JTG’s position was that the Chinese firm was in breach of the subcontract agreement as well as various supplementary subcontract agreements.

The Chinese firm opposed the suit but admitted the sub-contracts but denied that the price was a fixed unit price dependent on the complexity and dexterity of the work to be done. 

Chinese firm position was that JTG Enterprise ltd was bound by the terms of the subcontract and was going to execute the works based on the drawings and bill of quantities contained in the contract unless the variation was given by the Ministry of Water and Irrigation.

It admitted signing the supplementary subcontract but contended that the same was not the basis of the plaintiff’s claim. It further denied that there were any changes in the rock level that would necessitate a change in the payment price.


Absa Bank Queensway branch in the central business district./PHOTO BY S.A.N.


Absa Bank has been barred from auctioning a prime property in the city to recover a loan of Sh86 million owed by New Mega Africa ltd and Nairobi businessman.

Commercial Court Judge Josephine Mongare barred the lender from selling the Kitusuru property belonging to New Mega Africa ltd and businessman David Abai Omusala.

The businessman runs a transport firm that has defaulted on a Sh86 million loan, which was secured using the Kitusuru property.

“A temporary injunction order be and is hereby issued restraining the bank and its employee or agents from advertising for sale, selling private treaty, or conducting or concluding a public auction of all that land pending the hearing and determina- tion of the suit,” ordered Judge Mong’are.

The judge further issued an order preventing the transfer of the title of the property to a third party pending the determination of the dispute.

Absa Bank had moved to seize the assets to recover unpaid loans, which stood at Sh86.4 million as of September 30, 2022, forcing the company to seek court’s intervention.

The bank said the loan has fallen into arrears and continues to accrue interest, despite its calls for the company to regularise the account.

The orders barring the auction and the transfer of the property comes ten months after another judge slapped the bank with a Sh1.5 billion compensation order for breach of confidentiality

Justice Njoki Mwangi directed the Absa bank to compensate Abai who is a director of New Mega Africa Limited the amount ruling that it was unfair for the bank to have leaked the trader’s financial statements with strangers without his consent.

“The court finds that the bank owed the client a fiduciary and contractual duty, but it was in breach of those duties which caused Abai to lose business and funds. He is entitled to compensation of Sh1,512,533,679 from Absa bank plus in- terest accrued,” ruled Justice Njoki.

The court compensated Abai the compensation for loss of income, goodwill and fixed assets.

The Judge entered the judgement in favour of Abai and his company after Absa failed to defend the lawsuit.

“The defendant herein having been duly served and having failed to file defence within the stipulated period of time, and upon application of the plaintiff’s ad- vocate, I enter interlocutory judgment as prayed,” the judgment reads.

The award comes after the director of New Mega Africa Ltd, a transport company in the country sued the bank claiming that it had violated his rights by disclosing his confidential information to third parties without his permission.

Abai argued that the move by the bank to leak his financial details to strangers without his consent led to financial sabotage in July 2021.


Embakasi East Member of Parliament Paul Ongili alias Babu Owino during misuses of firearm judgement./PHOTO BY S.A,N.


Embakasi East Member of Parliament Paul Ongili alias Babu Owino has been acquitted of charges of misuse of firearm in a case where Felix Orinda alias DJ Evolve was injured.

Trial magistrate Bernard Ochoi found Babu Owino not guilty and acquitted under section 215 of the criminal procedure code.

The magistrate ruled that the prosecution failed to prove the case beyond reasonable doubt.

“Having evaluated the evidence available before me and applying the relevant test, it is my finding that the prosecution has not proved its case beyond reasonable doubt,” said the magistrate in his decision.

The court noted that the case was of great public interest that may have gone wrong during investigations and suggested that such matters should be assigned to senior and experienced officers at least in the rank of Inspector of police.

In the 32 page judgement, Magistrate Ochoi said there was no evidence presented to show the state of sobriety or otherwise of the accused in the allegation of being disorderly.

While acquitting the MP, he said that the victim(Dj Elvove) of the alleged offence denied that he quarreled with the legislator or that Babu shot him.

“There was no evidence that the victim sustained a gunshot wound that the accused intended to shoot him and the ballistic expert did not conclusively find that the accused’s firearm was the one used in the act,” observed the magistrate.

The magistrate said the Directorate of Criminal Investigation had done a shoddy work on investigating the case as the crucial evidence was not shown.

“The investigations were shoddy as the most crucial evidence was not shown. On the footage provided in court,from where the accused was standing where the wall that the bullet was recovered,it could’ve been determined by the angle of the bullet came from where the accused was standing.” said Ochoi.

The court stated that the investigation could have determined who had shot Felix by analysing the CCTV footage from where Babu was standing and where the bullet was recovered.

Further,the court noted that Orinda was not one of the Prosecution’s witnesses and neither did he record any statement or a report given that he had refused to give a statement.

The court also said that the injured DJ testified that Babu was known to him and even helped with his hospital expenses and general bills.

“Felix Orinda’s evidence being considered crucial, stated that he was talking to the accused on the day of the incident and did not see the gun on him nor did he have any arguments with the accused,” the magistrate said.

According to the Magistrate, the forensic examination didn’t confirm that the bullet found at the scene was a match to the firearm that belonged to Babu Owino and neither did the ballistic expert find any link to Babu’s firearm.

The magistrate observed that the ballistic officer testified in respect of the examination and analysis conducted on the exhibits mentioned and said that he examined the exhibits and confirmed that exhibits were a firearm and ammunitions respectively and were capable of firing and being fired.

He also stated that the ammunition were caliber 9×19mm. He also formed the opinion upon analysis of the recovered spent cartridge case it was found to be in caliber 9x19mm and had sufficient breech face markings, ejector markings and firing pin identification which enabled him form an opinion that it was fired from Mannlicher pistol like that of the accused.

In regard to the recovered bullet head he stated that upon examination it bore six identifiable land engraved areas similar to those found in the accused’s gun, he however stated on cross examination that he could not tell whether the recovered bullet head and cartridge case were related and could not tell whether the bullet head that was recovered and marked “E” was shot from the accused’s gun.

He admitted on further cross examination that there were many firearms which could use a 9x19mm ammunition like Ceska pistols, Glog pistols, Smith and Weston etc.

The net effect of the evidence of the ballistic officer’s evidence was that though the accused’s firearm may have been used to fire the recovered cartridge and recovered bullet there was a possibility of other firearms doing the same and therefore could not conclusively find that the accused’s gun could have fired the recovered bullet head and cartridge.

The magistrate said it was upon the investigating officer therefore to avail collaborative evidence as the evidence by the ballistic officer could not stand on its own.

Addressing the media at Milimani law courts after being acquitted, Babu said that he won’t stop supporting DJ evolve and is planning on flying DJ evolve to India for further treatment.

He further said that he will find true victory on the news of the DJ being fully recovered.

DJ Evolve was shot in 2020 at B club in Kilimani as Babu was having a meeting in the club. The MP has been supporting him by paying his hospital bills and medicare. Babu claimed he had spent over Sh 58 million on the DJ.