Chinese Firm After Kenyan Lawyer in Ksh1B Deal Gone Sour

  • Chinese construction firm China Wu Yi, on Wednesday, November 20, sued a Kenyan lawyer it accused of fraudulent activities in a Ksh1.2 billion deal.

    According to a report by Daily Nation, the firm is demanding that lawyer Stephen Kithi be compelled to repay Ksh20 million it allegedly paid him while purchasing a parcel of land.

    According to court papers, the firm claimed that it got into a sale agreement with the lawyer on July 30, 2016, explaining that he was contracted in his capacity as a beneficial owner of the land.

    Kithi had reportedly won a tender from the property's original owners and was to sell it on their behalf.

    Lawyer Stephen Kith while appearing in a Mombasa Court on October 8, 2014.

    According to the firm, Kithi would be tasked with ensuring that the tenants vacate in record time and that all semi-permanent structures were removed after payment of the deposit.

    “On April 11, 2017, at the defendant's request, the plaintiff, through its advocates, released Ksh20 million out of the deposit paid to be utilised for vacant possession," the court documents read.

    The lawsuit further indicates that push and pull started when it reminded that lawyer that it was ready to complete the transaction. 

    The firm was seeking the lawyer to nominate it as the transferee for the transfer of forms from the registered owner to itself but he never fulfilled.

    “Instead, the defendant introduced a third party by the name of Propken (Mauritius) Ltd who purportedly had the transferees’ rights to the property," continued the suit.

    It further accuses the defendant of misrepresenting facts arguing that, should it have known that information beforehand, it would have avoided the deal altogether.

    “To date, the defendant has not refunded the amount despite the agreement requiring a refund of all sums paid to the vendor immediately upon the lapse of the completion notice,” argued the Chinese firm.

    Additionally, the firm is seeking Ksh5.8 million in legal fees and general damages for breach of contract.

    Logo of China Wu Yi, the Chinese firm that has gone after a Kenyan lawyer over fraudulent claims.