Kenya's anti-corruption agency joins land sale dispute

The Ethics and Anti-Corruption Commission EACC has joined a 700 million bungled land sale dispute between the Kenya Ports Authority KPA pension scheme and a Mombasa land selling company.

The KPA Retirement Benefit Scheme KPARBS is trying to recover $ 70 million that had already been paid to Kikambala Development Company Ltd. The scheme claims it has breached contract terms and wants to be paid damages.

While allowing EACC to participate in the case, Environment and Land Court Judge Sila Munyao noted that the agency has displayed a public element to the dispute.

EACC has carried out investigations that revealed that KPARBS trustees corruptly entered into the agreement to purchase the property, which comprises 15 plots valued at a total of Sh 700 million.

I will allow EACC to be joined to this suit as an interested party for that reason. "I will allow them to call witnesses and adduce evidence that may help this court in arriving at a just determination," said Justice Munyao.

EACC has informed the court that it has instituted a case in Nairobi for the recovery of the Sh 70 million that had already been paid out.

Kikambala Development Company Ltd sued the scheme in 2020, saying it breached an agreement to pay a 10 percent deposit on the land and balance within three months.

The agreement was rescinded by the firm.

The plaintiff is seeking a declaration that the defendant breached the agreement for sale and damages for breach of contract, the company said in its court documents.

The scheme admitted that there was a sale agreement, but pleaded that the firm did not have an interest that could be transferred to it before the completion date and that it failed to assemble all the completion documents.

The scheme revealed that the suit property was owned by another firm known as Amkeni Farm Limited.

The scheme has shown that the firm did not own the land but wished to purchase the same land from Amkeni Farm Limited for Sh 430 million, according to KPARBS.

The scheme further argued that the 10 per cent deposit it had paid was to be held by the firm's advocate, but in breach of the agreement the money was disbursed to three companies namely Amkeni Farm Limited Sh 43 million Seline Consultants Ltd Sh 22 million and British American Asset Managers Limited.

It further argued that the transaction was a commercial fraud and asked for an order directing the firm to refund the 70 million it paid as deposit and general damages for breach of contract.

The agreement for sale was entered into and executed after the scheme, through its trustees, confirmed that it had an equitable interest in the suit properties, according to the company.