DP Ruto owned Weston Hotel is on the spotlight again after it has emerged that it owes the Kenya Commercial Bank a total of 1B shillings, something the bank managers say has been hard to recover from the hotel. They have extensively cited interference and intimidation from the DP’s office saying it has been hard for the bank to get its money back. The money was supposed to be paid by the DP in line with the ownership row currently the establishment is embroiled in.
KCB having done due diligence, went ahead & gave a Ksh1.2B loan to Ruto, charged to the land Weston Hotel sits on that was only worth Ksh300M using HHM law firm. Khawaja, MD of HHM is also Chairman of KCB (clear abuse of office). Now KCB is fighting to get back its Ksh1Billion?! pic.twitter.com/miXBKZg5f1
— Kiigen K. Koech (@KiigenKoech) October 4, 2019
Documents filed by the bank before Lands Court judge Bernard Eboso show that Weston secured several loans from the lender using the land now being claimed by KCAA as security.According to KCB’s legal director Bonnie Okumu, Weston secured a Sh350 million loan on October 9, 2014, using the Weston land. The bank also lent the hotel $1.5 million (Sh150 million).A year later on July 8, 2015, Weston again went for another Sh700 million and used the same land as security.
— Cane Cutter (The Poor) (@CaneCutter2) October 4, 2019
“There is a real risk that the applicant (KCB) may be rendered a mere bystander as orders which are adverse to its beneficial interests are granted to the petitioner.“By the virtue of the registered charge and further charge, the applicant has extended banking facilities to the second respondent amounting to Sh1.5 billion and $1.5 million (Sh150 million,” court papers filed by lawyer Emmanuel Wetang’ula on behalf of KCB also read.
The lender argues that it gave Weston the loan relying on a confirmation from the Registrar of Lands that Weston was the registered owner of the land.Weston and KCAA did not challenge an application by KCB and the judge allowed it to join the case yesterday.
DP Ruto had previously confessed during an interview with the BBC in February this year that the land in which Weston Hotel sits on was disputed and that he did not know that it was grabbed from the KCAA.
Watch DP William Ruto confirming Weston Hotel sits on illegally acquired land,….I like the way the journalist cornered him. Masterclass journalism, sasa rudishia mali ya wenyewe…..
Video | Courtesy pic.twitter.com/yN3HHkxMNb
— Cyprian, Is Nyakundi (@CisNyakundi) February 12, 2019