A 26-year old legal battle between a local bank and two companies owned by President Uhuru Kenyatta's nephews has now gone to the Supreme Court.
The Kenya Commercial Bank (KCB) has filed an application at the Supreme Court challenging a decision to allow Muiri Coffee Estate Ltd to take the dispute to the same court. Three Court of Appeal judges made the decision early last month.
The dispute over the ownership of 443 acres of land in Kiambu County pits private firms Benjoh Amalgamated Ltd and its subsidiary Muiri Coffee Estate on one side, and KCB and another firm, Bidii Kenya on the other.
Benjoh Amalgamated Ltd and Muiri Coffee Estate are associated with President Kenyatta's nephews Ngengi Muigai and Samuel Muigai, who are the directors. Between 1988 and 1990, Benjoh Amalgamated Ltd secured a loan from KCB and used the land as security. Muiri firm secured the loan.
But the company defaulted on repayments and on September 19, 2007, the land was sold at a public auction to Bidii Kenya for Sh70.1 million. It was transferred to them on August 8, 2008.
The matter went to the High Court, with Muiri Coffee Estate claiming the land was worth Sh693 million and that the sale was fraudulent. This has since given rise to multiple suits as the company attempted to get the land back.
On April 26, 2013, Muiri lost to Bidii Kenya in the Court of Appeal. In September this year, Muiri firm went back to the Court of Appeal with an application for a certificate to move to the Supreme Court and appeal against the decision.
They successfully argued the case was a matter of public importance and should be finally determined by the Supreme Court. KCB is now challenging that certificate, arguing the case did not raise matters of public interest to be addressed by the highest court in the land.
In an affidavit, the bank's head of legal services Bonnie Okumu says Muiri firm had not produced any facts or legal arguments as proof that this matter was of general public importance. "This case does not raise any cardinal issue of law or jurisprudential moment that requires its further input and therefore the same should not proceed to this court," Okumu said in his court papers. The bank has also named Bidii Kenya as respondent. The case will be heard later this month.
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