Businessman Benson Sande Ndeta avoided spending the weekend behind bars after the High Court intervened to grant him release pending the determination of his ongoing legal battle.
This follows an earlier decision by a Nairobi magistrate to detain him at Muthaiga Police Station until Monday December 2 after he denied forgery charges in court.
Justice Bahati Mwamuye issued an order for Ndeta’s release on Friday, granting him freedom unless he faced detention for other charges related to the same case.
The court mandated that Ndeta’s legal team file the necessary documents with the Director of Public Prosecutions (DPP) by the end of Monday, December 2.
Further proceedings are expected in January 2025.
The businessman, who holds a major stake in Savannah Cement, faces multiple fraud charges connected to the company’s financial dealings.
Ndeta and his co-accused, Charles Hills Jr, are accused of illegally securing a Sh4.5 billion loan from Absa Bank (formerly Barclays Bank) between 2017 and 2018.
They are charged with conspiracy, false documentation, and defrauding the bank.
Ndeta pleaded not guilty to all charges.
His lawyer, Cecil Miller, condemned the accusations, arguing that Ndeta was merely conducting legitimate business aimed at expanding operations, providing jobs, and contributing to the nation’s economic growth.
Miller further contended that the charges were orchestrated due to competition, specifically after Ndeta’s successful bid to acquire Bamburi Cement, the largest cement manufacturer in Kenya.
While the prosecution insisted that Ndeta posed a flight risk, claiming he had not disclosed his residential address to authorities, Miller countered that Ndeta is firmly rooted in Kenya, with a family and substantial investments in the country.
The prosecution also expressed concern that Ndeta might interfere with investigations, an assertion that was strongly rejected by his defense.
The charges stem from an alleged scheme to obtain a loan for Savannah Cement under false pretenses, with the accused reportedly forging corporate documents.
Ndeta and Hills Jr are also accused of misrepresenting themselves as authorized representatives of Savannah Cement when securing the loan.
Hills Jr is further accused of fraudulently posing as a director of Savannah Heights, a company involved in the loan process.
The case is linked to the broader financial struggles of Savannah Cement, a company that was placed under administration in late 2022 after failing to meet its loan obligations.
Despite its financial setbacks, the company’s internal disputes and management battles have kept it in the public eye, particularly after Ndeta’s controversial proposal to buy Bamburi Cement for Sh25.41 billion, a move that surpassed rival offers.
The investigations showed the acquisition by Ndeta of the 4,500 shares in Savannah Cement resulted in directors Donald Mwaura Kiboro and John Gechanga becoming minority shareholders in Savannah Cement.
This led to boardroom wrangles and rivalry within the company as a result to which the two did not attend board meetings, a fact which made the confirmation of minutes and approval of board resolutions impossible.
The investigations found out that pursuant to an approval by the Board of Directors of Savannah Heights in a meeting held on 16th November 16 2017 and attended by the two directors but not Ndeta, Kiboro transferred 300 of his shares in Savannah Heights to Falcon Ventures Holdings LLC, represented by Charles Hill JR for a consideration of Sh700 million.
“The purchaser defaulted in payment of the purchase price, whose last payment date was 2nd February 2018, as a result of which the share sale/ purchase between Kiboro (seller) and Falcon Ventures Holdings LLC (the purchaser) fell through. There was thus no transfer of shares in favour of Charles Hills Jr,” the probe file says.
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