A Nairobi businessman has been jailed for six months for failing to pay Sh11.9 million to a motor company in a land dispute.
Johnson Kigundu was committed to 180 days of civil jail after he failed to obey a decree that ordered him to pay the hefty sum to A-Plus Motors Limited.
A-plus Motors Limited, through the company’s managing director James Mwangi Muturi, sued Kigundu at the Environment and Lands Court after he was defrauded Sh5.3 million in a land deal.
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In court documents, Muturi claimed that on or about November 16, 2016, they entered into a sale agreement with Kigundu for the purchase of a property situated in Thome, Nairobi County.
The purchase price of the property was to be Sh34 million and being the purchaser, he paid a 10 percent deposit which was Sh3.4 million while the rest of the money was to be financed by Spire Bank.
Kigundu, however, requested an additional deposit of the purchase price which he paid, totaling Sh5.3 million.
However, Spire Bank while conducting due diligence to confirm that Gikundu was properly registered as the proprietor of the property, realized that he was dilly-dallying in providing the essential documents for the property.
The bank had requested Gikundu to avail the previous transfer in his favour from the person who allegedly sold him the property and stamp duty payment receipt for the transfer in his favour.
“The defendant (Gikundu) delayed in forwarding the said documents which led to the bank’s director to hold a meeting with him, in the said meeting, he made a startling admission that he had not paid stamp duty on the transfer in his favour and that was the reason why he could not avail the documents that were requested,” claimed Muturi in court.
Gikundu did not file any response to the suit and the Environment and Lands Court entered a Judgement in favor of A-plus Motors Limited for sum of Sh8.7 million-plus interests and costs.
The court directed that he pay a sum of Sh5.3 million plus interest from the date of payment to the date of full reimbursement.
He was also ordered to pay Sh3.4 million being the 10 percent damages payable for breach of contract, legal fees expenses of sh 620,600, and valuation fees of sh 80,000.
He failed to pay the monies which led to court to issue a warrant of committal against him for 180 days.
