The KCB Group has been ordered to file evidence within 21 days in a case where the High Court held that it fabricated statements of accounts of a company it advanced a loan 27 years ago to finance a flower project in Nyandarua County.
Appeal Judges Hannah Okwengu, Sankale ole Kantai and Fatuma Sichale also directed Benjoh Amalgamated Limited, which is associated with President Uhuru Kenyatta’s kin, Captain (rtd) Samuel Kung’u Muigai, to answer KCB’s testimony within 21 days.
Also Muiri Coffee Estate, associated with Ngengi Muigai, also a relative of President Kenyatta which is contesting the auctioning by KCB of its 434 acres of land under coffee for only Sh70 million while its value is over Sh700million, was also directed to file submissions in the appeal.
Muiri had only secured a Sh11.5 million facility for the loan advanced to Benjoh and Sh6million had been paid towards offsetting the loan.
The court was set to hear three appeals arising from the sale of Muiri Coffee Estate but failed since KCB lawyer Philip Nyachoti is bereaved.
The lender, which advanced a loan to Benjoh in 1989, is asking the Court of Appeal to quash a ruling by a former High Court judge (the late Justice Joyce Khaminwa) who found that it “had manufactured the statement of accounts of the company”.
The firm says it did not know how much money was disbursed to suppliers of the flower project and how much cash was advanced to it.
Justice Khaminwa had ruled KCB manufactured its accounts following an admission by its senior manager that it had no records for the company’s account.
The court wondered how the interest of Sh3.4 million jumped to Sh44million within eight months.
Benjoh has disputed the outstanding loan amount the bank demanded, saying it did not know how Sh70 million was arrived at as no proper statement of accounts was made available to it on request.
KCB had asked the late judge to dismiss the case by the company seeking the accounts, saying the issue had been revisited in 18 previous cases.
Benjoh says the amount demanded by the bank between May 9, 1996 and May 9, 2006 was Sh143,844,249.59.
But the bank admitted before the late judge that it was “not able to trace statements of its (Benjoh) account save for the period December 2003 and May 2006 as the files and bank statements got lost.”
Mr Muigai, who is the company’s managing director said there is alot of confusion as the amounts demanded are varying.
He said his company is entitled to a true statement of account and that the move by KCB to sell to Bidii Kenya Limited, Muiri Coffee estate’s 443 acres should be reversed.