A national real estate society has been caught up in the middle of what is turning out to be a fraudulent Sh2.8 billion land deal in Kiambu county.
National Co-operative Housing Union (NACHU) Limited has acquired and started selling plots from a 402-acre parcel of land in Ruiru, even without paying a single shilling.
NACHU has 900 listed housing societies drawn from across the country on its membership list.
This has been revealed in court documents after one of the six directors of the company that owns the coffee farm moved to court accusing a fellow director and former police commissioner Bernard Njiinu of irregularly transferring the land to NACHU.
Documents filed at the Environment and Land Court in Thika state that Mary Njoki Thuku accuses Njiinu of fraudulently transferring the land without the consent of other directors of New Pillion Estates Limited.
Ms. Njoki is the widow of Stephen Thuku Mungara, who alongside Njiinu, the late Peter Gicheru, late James Kamau Thiongo and John Kiereini Kireka are listed as shareholders of New Pillion that owns the land in question, Parcel L.R No. 11295 (original No. 119/2, 4586 and 48930) situated in Ruiru.
Ms. Thuku, through lawyer John Kamonjo moved to court on April 19, 2021 seeking to stop the sale of the disputed land until the matter is heard and determined.
Njiinu served as police commissioner from 1982 to 1988. Ms Thuku has listed New Pillion Limited, Njinu, Tropical Farm Management, NACHU and Kimani Gitahi & Associates as respondents.
According to a sale agreement filed in court, NACHU entered into a sale deal with Pillion on March 30, 2021 for Sh2,814,000,00 or Sh7 million per acre for the 402 acres.
In the agreement, NACHU was to pay 30 per cent upon carrying out a successful search at the registrar of companies, receiving audited copies of accounts for 2020 and actual returns and carrying out a search at the land registry.
Escrow account
Ten per cent was to be paid on or before May 7, 30 percent by June 30 and the balance of 30 per cent by July 31, 2021.
However, before this was done and an approval for subdivision granted by the Kiambu county government in accordance with the law, Nachy began advertising and offering it for sale to its members and the public.
Worse still, the title deed for the disputed land is charged at the Co-operative Bank meaning that NACHU is offering for sale land that it does not have a title for.
NACHU has in its response filed in court acknowledged the encumbrances but denied any wrong doing or fraud on its part saying the sacco resolved to open an escrow account to deposit the money while waiting for the hindrances to be cleared.
An affidavit dated May 31, 2021 and signed by CEO Mary Mathenge says that the agreement for sale of the property that is legally charged, was in good faith whilst awaiting the availability of the latest CR12.
“New Pillion and NACHU have already opened the envisaged escrow Bank Account whose operationalization is being hampered by the lack of the Vendor’s CR 12 which the Bank has been calling for.”
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