One of Kenya’s real estate companies and its foreign creditors are ready for a major war in which billions of shillings are at stake.
Taaleri Africa Rahasto II KY, a Mauritius company, is claiming 3.016 billion shillings from the Eleven Investment Partners of Cytonn.
Claimants claim Cytonn to file security in court or lock up accounts for The Ridge, Cytonn Towers, Applewood, Riverrun and Taraji.
Taaleri, in his court documents filed by Cecil Miller’s lawyers and the Company, states that on June 6, 2018, they lent Cytonn Sh2.7 billion.
They claim that the two have agreed to have a partnership, with Ridgeways’ assets as collateral and hold all the money received.
Mauritius claims that in June 2020, Cytonn was owed $ 3.016 billion and that unsafe foreigners in Kenya owned Cytonn.
“It has been brought to the plaintiff that the defendant is facing insolvent bankruptcy and, in fact, there are several claims against the defendant pending in court that relate to the defendant’s ability. To meet their financial needs. The documents submitted to the commercial court, read in part, Obligations. Taaleri manager Sirenius Jarkko, in his affidavit submitted late last year, claims that despite constant reminders, Cytonn has not given up on the end of the business.
But Cytonn accuses Taaleri of coming to court with dirty hands and telling the court pure and simple facts and inventions.
In response, Patricia Njeri Wanjama, director of Cytonn, argues that contrary to what Taaleri claims, the company is owned and managed by Kenyans, with the exception of two foreign board members who represent Taaleri.
According to him, the agreement was that if there was a payment, the lender was free to sell his shares in partnership or part and the new entrant would be the new partner.
He says Taaleri did not apply this clause before filing a case in court.
“Even if the plaintiff seeks justice in the claim on the pretext that he has been disclosed, he has not exercised his rights under the ranks he holds.
“The plaintiff’s investment in the defendant is backed by the prosecution, whose bail is in the corporate bond account and, recognizing, the selling power is related to the recognized bond and what exercise of the power sales complainant I have not begun to practice,” replied Wanjama. .
According to him, Cytonn’s business at The Ridge is a mixed-use development of 15 billion shillings that includes residential and commercial space.
He says the purchase of the land was funded by Cytonn High Crops Solutions (CHYS) and Cytonn Eleven LLP (CPN) Investment Partners and is interested in the property.
Wanjama says Taaleri’s investment is in The Ridge, complete and awaiting a better business environment.
He notes that the project, which began on April 17, 2018, has stalled due to the Covid-19 disaster.
“Unfortunately, the project has been suspended since February 2020 due to the outbreak, which made construction work impossible,” he said, adding that Cytonn had returned to the site and Taaleri was aware of it.
Meanwhile, real estate company TT Africa, based in Kasarmikatu, Helsinki, Finland lent Cytonn at least 1.7 billion shillings between 2015 and 2016.
According to his court documents, in 2015 Cytonn borrowed 1.36 billion shillings and in 2016, 400 million.
He now claims the loan is 2.7 billion shillings and wants the court to compel Cytonn to release all his books and not be allowed to handle his five assets.
TT Africa sued Ololua Estates LLP and Cytonn. “The complainant may incur a total loss if his claim is to be heard.
“The owners of the second defendant (PIC) are foreign nationals who do not have a known identity and property under surveillance in Kenya,” court documents say.
TT Africa Director Backstrom Marko said that on August 13, 2018, Cytonn was owed 1.7 billion shillings.
TT Africa and Cytonn then agreed to repay the loan but the plan presented by Ololua did not bring back the target until April 30, 2020.