A Kiambu billionaire has been barred from developing a Ksh3 billion parcel of land located in the leafy suburbs of Runda.
High Court judge, Justice Alfred Mabeya, placed a caveat over the 16.7-acre tract and blocked Kiambu mall owner, Peter Burugu, and retired banker, Francis Ng'ang'a, from accessing the land.
Ng'ang'a was accused of defaulting a loan worth Ksh2.5 million offered by a defunct credit facility.
Tycoon, Burugu, stated that he took ownership of a company that purchased the land from Ng'ang'a in 1993. However, the retired banker is alleged to have failed to transfer two title deeds out of the five parcels of land purchased.
The billionaire, through the company, sought to block the credit facility from auctioning the Ksh3 billion land to recover its Ksh2.5 million loan. The credit facility argued that Ng'ang'a agreed to surrender the Runda land title deed as security if he failed to offset the loan he took in 1982.
However, the court learned that Ng'ang'a reportedly failed to register the land as security despite receiving the Ksh2.5 million loan.
Justice Mabeya thus ordered all parties to desist from developing the land until the court determines the rightful owner of the land contested by the credit facility, Burugu, and the retired banker, Ng'ang'a.
In May 2020, the Office of the Director of Public Prosecutions (ODPP), rejected Burugu’s request to reopen an investigation into the Ksh3 billion land. The ODPP stated that the businessman failed to prove ownership of the land whose case was in court.
The tycoon reported that the land had been invaded by another businessman, David Kimani. The ODPP stated that Kimani presented his ownership documents for verification.
“We note that the said complainant (Burugu) was requested to provide his title documents of ownership but failed to do so even as you forwarded the file to us. He mentions one David Kimani who claimed ownership of the same land and who produced his ownership documents.
“Good faith is clearly lacking on the part of the complainant and there is, therefore, no basis for reopening this inquiry file. It is also not clear why the complainant waited five years to make his complaint,” ODPP’s letter to the Directorate of Criminal Investigation (DCI) read.
Detectives assigned to the case detailed that records at the company Burugu alleged bought the Runda land, did not show proof of a change of ownership. They added that there were no records to prove that Burugu purchased the company, thus could not lay claim to it.
