Kirinyaga Governor Anne Waiguru has been dealt a blow in her bid to stop auction of her house located in Kitisuru Nairobi to settle a debt owed to the developers of Kihingo village.
The High Court in Nairobi gave the developers a green light to auction the property and recover the Sh4.5 million debt.
The developers, former Tetu Member of Parliament James Gethenji and his brother Gitahi Gethenji, owe Frame Consultants Sh4.5 million.
Justice Alfred Mabeya ruled that since Waiguru was yet to finish the payment of the house, the duo is the rightful owner of the property.
The judge concluded that Frame Consultants can auction the mansion worth Sh80 million or attach the property.
“In this regard, Frame Consultants can either attach or auction the property to recover its debt,” Juctice Mabeya ruled.
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The Kirinyaga County chief purchased the house in 2015.
Out of the Sh80 million the owner was asking for, she paid Sh40 million and is yet to settle the balance.
According to the former Devolution and Planning Cabinet Secretary, she paid the 40 million in cash and had an agreement with KCB Group to clear the balance through a mortgage.
The mortgage agreement was reportedly not completed.
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The botched sale deal happened two months before Waiguru resigned as Devolution CS in November 2015 after sustained pressure from the political class to vacate office over allegations of massive corruption in her office.
In court documents, the Kihingo Village Ltd directors denied receiving the payment, arguing that Waiguru is a tenant and not the owner of the house.
Waiguru dragged the directors to court in November last year after they threatened to evict her and auction her property.
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They had directed the governor to vacate the house by February 29.
Justice Elijah Obaga then issued temporary orders stopping the property developer from evicting Waiguru and ordered the two parties to settle the rent dispute among themselves.
The governor had asked for permanent orders to halt the eviction.
“The delay in completion of the said agreement has been occasioned by the respondents who have failed to deliver the completion documents to enable the bank to register a charge against it before releasing the balance of the purchase price,” said Waiguru in court documents.
“… I am not a tenant in the suit property but a purchaser who has so far paid half the purchase price in line with the provisions of the lease agreement dated 25th September 2015.”
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