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How Githu bought 16 apartments through proxy in botched auction
THURSDAY MAY 26 2022
githu
Former Attorney-General Githu Muigai. FILE PHOTO | NMG
By JOSEPH WANGUI
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Former Attorney-General Githu Muigai used a proxy to buy 16 apartments in Nairobi’s Ngong Road through a botched auction deal.
Prof Muigai is now seeking a refund of Sh100.5 million from a bank that auctioned the properties two years ago in a suit that threatens to reveal secret financial dealings of the former chief government legal adviser.
The former Attorney-General says in court papers that he conducted 16 bids for the apartments through a proxy named Koome Kiragu.
Now, Prof Githu, through his trading company Fairlake Estate, is seeking to terminate the auction deal, arguing that the bank has failed to offer him documents for ownership of the homes.
The bank has told the court that Prof Muigai was offered the ownership documents, including the original title deed and leases on September 29, 2020, and asked Justice Wilfrida Okwany not to reverse the auction deal.
Also Read: GITHU MUIGAI: I Pulled Myself Up By My Bootstraps
“The bank can not be blamed if the plaintiff has not taken possession of the apartments. The plaintiff understands the process of taking over possession of the units it purchased and should use the legal options available to it to take the apartments,” says the bank through Walker Kontos Advocates.
The property was previously the subject of a separate court case where the tenants opposed the auctions, arguing they had bought the property from the developer.
The developer has tapped a mortgage but failed to pay back the bank after selling some of the apartments.
The High Court dismissed the suit, setting the stage for the bank to auction the apartments to Prof Githu.
“Due to the bank’s inability to deliver clean title for the properties and possession to Fairlake Estates Ltd, the auction sales stand rescinded by the conduct of the bank,” says Prof Muigai through his advocate, Mohammed Nyaoga.
The bank has opposed the termination of the sale deal and return of the Sh100.5 million, saying it has not breached any terms or conditions of sale and that Prof Muigai has already been furnished with documents to ease transfer of the property.
Prof Muigai filed the case at the High Court in Milimani after claiming he was denied access to the housing units at Zahara Gardens, Ngong Road.
The houses were auctioned in May 2020 after the previous owner defaulted on a loan.
ALSO READ: Kakuzi hires Githu Muigai to lead its human rights drive
Prof Muigai was represented by Mr Koome, a businessman who emerged as the highest bidder.
In his court papers, Prof Muigai argues that the bank breached the sale contract by failing to furnish him with the transaction’s Completion Notice within 90 days, as provided for in the agreement, to enable him take control of the property.
He wants the court to order a refund of the Sh100.5 million and reversal of the auction
He says the bank was supposed to give him the documents within 90 days upon payment of the first auction price on August 24, 2020.
Court papers indicate that he first purchased 14 housing units in May 2020 and the transaction was supposed to be completed on August 24, 2020. He purchased another two units in December 2020 and the completion date of the second transaction was March 14, 2021.
He further argues that the bank failed to provide all the completion documents for each specific apartment auctioned as a separate and distinct lot, a move he says is a repudiation of the auction.
ALSO READ: Former AG Githu Muigai to take up lecturer’s job
“At the time of auction and to date, Fairlake Estate Limited is unable to take possession of the auction property as it has been repeatedly denied access to the property,” says Prof Muigai in the court papers.
He adds that the bank is also yet to create sub-leases for the units and that titles for the individual units are not available despite the bank having auctioned the apartments as separate lots.
Prof Muigai says he became aware of multiple suits filed by aggrieved parties over the auction of the properties between May and June 2021.
“Attempts of seeking particulars and progress of the suits from the bank have been met with obfuscation that renders it impossible to determine the bank’s ability to perform its contractual obligation not only to Fairlake but to any third parties,” the court papers indicate.
The case will be heard on June 22.
Interesting, @Azor Ahai leta insight.
Weeh, lawyers in the house leteni insight
Kama former Attorney General anaoshwa, wewe ni nani. You buy the flats kumbe developer has defaulted on bank payments. Banks wana auction mali and buyers are left in the cold.
A similar scenario happened at Fourways Kiambu Road. Suraya the developer and Gatabaki family the owners of that land were at loggerheads.
I would rather buy a shamba in the bundus nichape bungalow pole pole as I rent in Nairobi.
Always nice to see these people get beaten at their own game.
Weeh… Developer hapo amekula pesa ya bank na ya people who purchased the units na akaingia mitini.
Buying an apartment is a disaster. You buy and move in but kumbe the developer had a huge bank loan and defaulted, and so the bank sells the whole development to recover their money and unaachwa homeless and penniless. Taabu tupu.
The person must be having balls of steel. Pulling such a stunt on the likes of former AG tells a lot about the person.
River Yala loading
Shoga hii wacha uwoga kifo ni lazima
Chunga huyo shoga asikupake kinyesi. Huyo former AG Amejua nairopi sio ya mama ya mtu.
That Koome Kiragu proxy is the husband of CJ .Kenya is a giant cartel playground
This is why it’s crucial to insure your title deed (for high value properties). It protects your investment against unforeseen liens, back taxes or inheritance issues, not to mention land encroachment, by paying all legal fees up to full value of the property.
The people who got screwed here are the occupants, my guess is that AG Muigai is acting on good morals, and doesn’t wanna get in this mess, though he is in it neck deep.
The guys who bought these apartments have been to court and their case was thrown out, i don’t know if they have exhausted all the legal avenues available, meaning that the new owner of the apartments has all the legal rights to evict them.
The bank wanted to recover it’s money by all means, and that’s why they’re saying Githu was issued with the title.
The question here’s, why isn’t the justice system in .ke putting to task the developer ?
waaah
Who was to ensure the tittle here ?
It seems the developer was unable to sell units fast enough to repay the loan so the property was repossessed. . Unless he embezzled funds, there is no criminal liability. The bank ndio waliwekwa pagumu as they want to recover their investment but the apartments ownership creates a mess.
Note that Githu is saying he got just one deed for all units so there is possibility that every homeowner has no documentation to show ownership if their unit juu there’s a single master title deed.