Pattni loses Sh10 billion land case to ex-spy chief Kanyotu's family

The family of former Director of Security Intelligence (Special Branch) James Kanyotu has won a Sh10 billion land case against companies linked to businessman Kamlesh Pattni, the architect of the 1990s Goldenberg scandal.

Environment and Land Court Judge Oguttu Mboya, in his judgment, said the alleged sale of the Kangaita Coffee Estate Limited’s land in Ruiru violated the orders issued in a succession case blocking the sale of Kanyotu properties and the laws on land ownership.

Kanyotu, was the majority shareholder of Kangaita Coffee.

The judge observed that any sale or agreement was illegal due to court orders concerning the land, as well as caveats issued on October 7, 2010 and November 23, 2010.

“In the premises, it is crystal clear that by the time the sale agreement dated 19th February 2012 was being executed, the sale of the suit property was prohibited by lawful and valid orders of the court, which prohibited any dealings with the affairs of companies where the deceased was the majority shareholder,” said Justice Oguttu.

In this case, Marriot Africa International Limited, which allegedly owned by an unnamed Ukrainian but shared the same address as Trendsetters Investments Limited, which is linked to Pattni, sued Margaret Nyakinyua, Kanyotu’s first wife, Mary Wanjiku, Willy Kihara and Kangaita.

He also involved Ukombozi Holdings Limited as an interested party.

On the other hand, Kangaita sued Trendsetters Investments Limited, Marriott, Ukombozi, the chief land registrar, and the director of survey.

In its case, Marriott called Abdul Dawood Hassan and Ken Njau as its witnesses. Dawood told the court that he is a director of Marriott. He said that the other directors were Augustino Okori and Vijiya Minbohadur.

Dawood said the company deals with buying and selling properties. He claimed that Marriott purchased the 500-acre land from Trendsetters in an agreement penned by himself and Amos Otieno. He said Otieno had since left Marriot.

He claimed that the firm had obtained consent from the land control board. Asked about the orders inthe succession case, he said that the orders implied they were barring Mary Wanjiku, Christopher Ngata Kanyotu, Andrew Peter, John Kahiga Kanyotu and Sandra Njau.

Dawood stated that the land was subject to two court orders. Nevertheless, he said Marriott bought the same for Sh750 million. He also claimed it also paid Sh15 million as stamp duty.

According to him, by the time the firm purchased the land, Trendsetters had a clear title.

He alleged that Marriott’s majority shareholder was from Ukraine.

He was also asked about why Trendsetters shared the same address with Marriott.  He said he was not Pattni’s employee.

The witness claimed that Marriott had since sold the same property to Ukombozi for around Sh3 million.

Njau, the second witness, told the court that he was not aware that Kanyotu was Kangaita’s majority shareholder.

According to him, Kangaita directors sanctioned the sale. He, however, was pressed to explain how the amount agreed upon as the purchase price was Sh700,000,000 but the letter of consent indicated half the amount. The witness said he had no explanation for the variation.

He said that at the time the land was sold to Trendsetters, no orders were in place. According to Marriott’s second witness, the sale agreement was signed on behalf of Kangaita by Wanjiku and Christopher Ngata Kanyotu.   Njau said he was not aware of the order issued by the Chief Justice regarding the land.

He stated that the sale agreement between Kangaita and Trendsetters was lawful, adding that he was aware it had also been sold to Marriott.

He claimed that there was a board resolution on the distribution of the money, adding that the same was done. He could not, however, explain when it was done. Njau said he was tasked to follow up on the lands control board consent, but it was granted to lawyer Odhiambo Abdala.

Nyakinyua said she was one of Kanyotu’s widows. She stated that Jane Gathoni Muraya Kanyotu, Wanjiku and herself were interim administrators of the estate. Nyakinyua testified that she was aware that her co-wife had handed the title to Pattni who was linked to Trendsetters.  

She further testified that although she was a director of Kangaita, she was not consulted over the sale, nor was she aware that the land had been sold.

Nyakinyua said Wanjiku was not a party of the sale but clarified that Kanyotu’s first wife was only given documents to sign. She said that Pattni had approached her to drop the case in exchange of Sh50 million.

Nyakinyua stated she declined the offer. She said Justice Luka Kimaru had barred the sale of any property involving her late husband.

She insisted that the alleged sale money was never paid to Kangaita nor to her. According to her, the sale was illegal.

Kihara called Chief Inspector Bernard Cheruiyot and Chief Inspector Vincent Chelongo as witnesses. Cheruiyot said the alleged authors had not signed the consents, while Chelengo argued that Wanjiku did not sign the sale agreement.

The court heard that Ukombozi was the one selling the land on behalf of Pattni.

Trendsetters director Abhimanuy Garhwal said Adala was the lawyer dealing with the purchase. He claimed that the firm did a proper search before buying the land. Garhwal further claimed that the firm negotiated the purchase price with Wanjiku, Gathoni, Ngata and John Kanyotu who were allegedly Kangaita directors.

He also alleged that Kangaita was paid Sh325 million for the land, and the money was paid to Wanjiku, Gathoni and Ngata.

The judge found that Marriott could not have gotten a clean deal as Trendsetters’ sale was null and void.

He quashed the sale and barred Marriott and or its agents and Ukombozi from dealing with the property.