Nairobi News


How senior officials sold ‘Moi’s land’ being claimed by USIU

Twenty-seven years ago, Kenya Commercial Bank almost sold a controversial prime piece of land claimed by former President Daniel Moi to recover a Sh10 million loan that was taken by senior officials in his government.

This is the land that the retired Head of State sold for Sh500 million to businessman George Kiongera two months ago, provoking a high stakes dispute with United States International University – Africa, which is claiming ownership. The dispute has since moved to court.

Documents seen by the Nation show that one-time Finance minister Arthur Kinyanjui Magugu and Central Bank of Kenya Governor Philip Ndegwa were directors of DPS International, the company that took the KCB loan.

The company is at the centre of the current land saga because eventually, as confirmed by its lawyers, it sold the same piece of land for Sh17 million to Insurance Company of East Africa (ICEA), a company associated with Mr Ndegwa, on February 26, 1990.

ICEA then pocketed Sh90 million from USIU-A and transferred the land to the university on May 4, 1999.

The Directorate of Criminal Investigations (DCI) has since moved to probe the deal. Head of the Lands division at DCI headquarters Abdallah Komesha said his officers have recorded “so many statements”.

“This matter is still under investigation and because this unit deals with land fraud, we are therefore investigating fraud. Though we have taken statements I cannot reveal names (of the suspects) at this time,” he said..

Read the full story here.

SOURCE: Sunday Nation