Former Kiambu governor Ferdinand Waititu has lost Ksh52 million, after failing to complete payment for a half a billion property he intended to acquire in Nairobi’s Central Business District (CBD).
Waititu had paid the Ksh52 million as a deposit to acquire the office block but was unable to complete payments for the property.
The amount was paid to General Properties Ltd three years ago, but lenders were not willing to advance Waititu a loan to complete the payments.
In his court argument, Waititu accused the sellers of misrepresenting the true income of the commercial building which led to banks denying him a loan.
The house in question is Solar House, which he intended to buy through his company, Saika Two Estate Developers Ltd.
Even after being given more time to pay a balance of Ksh468 million, Waititu was unable to complete the transaction, the court was told. The transaction was to be completed within 90 days.
The seller then moved to court seeking to terminate the sale agreement and be allowed to forfeit the deposited money as damages for breach of contract.
“Saika proceeded to execute the sale agreement and paid the deposit without first securing bank financing. It is the duty of every advocate for the purchaser to advise his client to source for funds first before committing himself in an agreement,” said General Properties Ltd’s lawyer Anthony Wanyingi.
Justice Jacquline Mogeni ruled in favour of General Properties and also ordered the Land Registrar Nairobi to remove a restriction placed by Mr Waititu’s company against the property.
“A person who lodges caution over any property is one who claims right whether contractual or otherwise. Saika has not raised any objection on why the caveat should not be removed. The court finds that there is no basis for continuing to have the caveat lodged against the said title,” said Justice Mogeni.
Total monthly rent of the building as at year 2021 was said to be Sh15.8 million.