Former Vice-President Moody Awori guaranteed a Sh10.5 million loan for a director of an investment firm that acquired a Sh8 billion property in Karen, Nairobi, a court heard on Wednesday.
Lady Justice Lucy Nyambura Gacheru heard that Mr Awori, who was a director of Muchanga Investments which is battling with other companies and individuals over the ownership of the 134.4-acre land in Karen, witnessed and signed the loan application by Mr Horatius Da Gama Rose at Barclays Bank.
“There has been a relation between the bank and Muchanga Investments over the Karen land,” lawyer Cecil Miller told Justice Gacheru.
Mr Miller said the bank had been appointed by then owner of the land Arnold Brandley, who has since died, as the sole administrator of his property and had the singular mandate to sell the land.
The bank, which had a mandate over the land, sold it to Muchanga Investments in 1983 and “exactly at 3.30pm on August 30, 1983, the title of the property was used to secure a Sh10.5 million loan to Mr Da Gama Rose”.
The lawyer said the loan, which had been secured with Mr Awori as a guarantor, was paid and the title deed released by the bank to Muchanga Investments.
