A ruling by Justice Jessie Lessit has dealt a blow to the KANU fraternity over debts accrued by the party during retired President Daniel Moi's tenure as Head of State.
In 2009, Justice Lessit ruled in favour of Kenya Power, allowing them to attach the party's offices so as to recover Ksh738.8 million the party incurred in electricity bills while occupying KICC.
Moi's KANU headquarters were housed at KICC since 1995 but was kicked out in 2003 shortly after Mwai Kibaki became President.
At this time, the party would pay between ksh200,000 and Ksh300,000, in installments, against its ksh3 million monthly consumption.
By the time of Justice Lessit ruling, KANU’s debt had grown from Ksh212 million to Ksh738 million because of a 12 per cent annual interest that has been accumulating to date.
Kenya Power intended to auction the KANU offices in Nakuru but the branch officials move to the court of appeal opposing the move on grounds that they were separate from the headquarters.
Court of Appeal Judges Philip Waki, Patrick Kiage and Fatuma Sichale declined to give KANU orders barring the intended auction forcing the discontented officials to seek redress before Nakuru High Court Judge Francis Tuiyott.
In 2014, the High Court deputy registrar rejected KANU’s argument that the assets owned by a political party’s branch could not be sold to settle the debts accumulated by the head office.
Judges have foreseen higher chances of KANU losing the Nakuru offices to auctioneers as the legal stretch nears its end.
On Tuesday, Kenya Power lawyer Kenneth Fraser stated that the party branch filed the appeal late, at a time KPLC had already instructed auctioneers to attach the disputed office.
The lawyer added that Kenya Power’s debt continues to accrue and that the firm had spent millions in its efforts to get KANU to pay the Moi era debts.
