Former Kiambu County governor Ferdinand Waititu might lose Kshs52 million he paid as deposit in a property acquisition deal.
Waititu paid the said amount of money as deposit for a property he intended to purchase in Nairobi.
General properties Limited took the matter to court and on Friday October 8, the company asked the court to allow them to withhold Waititu’s deposit.
The court was told that Waititu was supposed to clear Ksh468 million balance, through his company Saika Two Estate Developers Limited within 90 days but he failed to meet his obligations.
“It was a term of the agreement that upon default by Saika, the General Properties Ltd had the right to rescind the agreement and forfeit the 10 per cent deposit as liquidated damages for breach,” the court heard.
Waititu contested General Properties limited decision to withhold his deposit when the sale of the property did not push through.
Saika complained about the seller in an attempt to have them refund the Kshs52 million.
On the other hand, General Properties argued that the sale agreement was approved by Waititu’s lawyers who also advised him to execute it. The seller accused Waitiu of breaching their contract after failing to clear the balance.
“It was a condition of the agreement that time was of the essence and that the balance of Ksh468 million was to be paid to the vendor advocates within 90 days from May 30, 2018. The defendant (Saika) has blatantly breached the conditions in the agreement,” the court documents read in part.
According to general properties, the buyer reached the sale agreement without securing finances first.
“Saika proceeded to execute the sale agreement and paid the deposit without first securing bank financing,” the seller added.
Waititu has been undergoing financial constraints after being impeached as Kiambu governor in January 2020 over graft allegations.
In April this year, he is said to have defaulted a Ksh10 million car loan he took from a micro-finance company in January 2020.
The microfinance moved to court seeking to have his vehicles auctioned.
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