Garam Investments Auctioneers
Joseph Gikonyo
Kel Enterprises
Kenya Revenue Authority
KRA
National Bank of Kenya

KRA seeks to stop bank auction of Sh90m house in ownership row

The taxman says the property was used as security to acquire a Sh42 million loan at National Bank of Kenya and that the lender is preparing to auction the house. In its suit papers, KRA says that a Mr Osman Said and NBK are intent on fraudulently dispossessing the property unless they are stopped.The KRA says NBK has started the process of auctioning the property  to recover a loan granted to Kel Enterprises and guaranteed by Mr Said.

KRA seeks to stop bank auction of Sh90m house in ownership row

The Kenya Revenue Authority (KRA) is locked in a fight over the ownership of a Sh90 million three-bedroom bungalow in Bamburi, Mombasa. The taxman says the property was used as security to acquire a Sh42 million loan at National Bank of Kenya and that the lender is preparing to auction the house.In its suit papers, KRA says that a Mr Osman Said and NBK are intent on fraudulently dispossessing the property unless they are stopped.The KRA says NBK has started the process of auctioning the property  to recover a loan granted to Kel Enterprises and guaranteed by Mr Said.

The taxman says the Bamburi property was not available for allocation to Mr Said or to any other party and remains a property of the KRA.The tax firm has also sued Joseph Gikonyo, trading as Garam Investments Auctioneers, and the Chief Land Registrar.“Any purported title documents that may have been issued in respect to any party, subsequent to the vesting of the property in Mr Said are null and void of no effect,” says KRA in its court documents.The KRA also wants a permanent injunction issued restraining the defendants from selling, disposing of, transferring, leasing and interfering with its possession and quite enjoyment or in any way dealing with the property.The taxman argues that notwithstanding it is the owner of the property, Mr Said has also claimed ownership.The KRA further says that a purported grant issued on February 18, 2003 and a transfer thereof registered in favour of Mr Said on July 5, 2005 is illegal, null and void with no legal effect.“The issuance of the purported grant was unprocedural, it is legally untenable that the government could allocate developed public land,” the KRA further argues.

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