Former Tetu MP James Ndung'u Gethenji at the Milimani Law Courts on February 18, 2021 .
| Dennis Onsongo | Nation Media GroupNews
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Court rebuffs firm in debt row with Ndung’u Gethenji-linked property managers
What you need to know:
- Frame Consultants Ltd sought to have the directors of Kihingo Village (Waridi Gardens) Ltd questioned on whether the company can pay the debt that arose from a court dispute.
A court has declined to summon the directors of a company that controls a multibillion-shilling estate in Kitisuru, Nairobi, owned by the family of former Tetu MP Ndung’u Gethenji to explain why they have not paid a Sh4.5 million debt.
Frame Consultants Ltd sought to have the directors of Kihingo Village (Waridi Gardens) Ltd questioned on whether the company can pay the debt that arose from a court dispute.
It also wanted the directors, Mr Gethenji and his brother Robert Marekia to produce the company’s financial records and its corporate veil removed so its directors can be revealed and be held personally liable for settling the debt.
But Justice Alfred Mabeya found that evidence showed the company can settle the debt because it is expecting Sh40 million from Kirinyaga Governor Anne Waiguru, who bought a house at the estate.
Affidavits from Mr Gethenji and Mr Marekia revealed that Kihingo had a property known as House No. ID (Dafina) Kihingo Village on Land Reference No. 27554. That property was being leased to Governor Waiguru and the proceeds would be used to settle the debt.
“The court saw the Lease Agreement dated September 20, 2015. It was between Kihingo and Waiguru for a consideration of Sh80 million. The subject property to be leased is House No. ID (Dafina) Kihingo Village on Land Reference No. 27554. The agreement was duly executed by Kihingo,” Justice Mabeya said.
The judge said Kihingo was able to establish that it owned an asset capable of settling the debt. Although the agreement was supposed to be completed within 90 days, it had not been fully performed when the application was being heard.
On whether Kihingo’s corporate veil should be lifted, the court said that since an asset belonging to the company had been disclosed, it was not necessary to determine the issue.
The judge, however, allowed Frame Consultants to return to court if the asset execution fails.
Frame Consultants, through its director Francis Kimani, said the commercial dispute between the two companies was determined through a Mediation Settlement Agreement dated December 14, 2018 that resulted in a judgment against Kihingo for Sh7 million.
Some Sh2.5 million was paid on February 5, 2019 but the balance was not paid. Frame Consultants took out warrants of attachment of movable property but was unable to locate Kihingo’s assets. That prompted the filing of the court case to recover the remaining Sh4.5 million.
Frame Consultants was the civil and structural engineers for the development of Kihingo Village (Waridi Gardens), a residential estate comprising 55 houses.
The dispute arose from Kihingo’s failure to pay for the work done.
