A company linked to Philip Okundi, the former Rangwe Constituency MP, has been unable to reverse the sale of his Lavington house after the High Court determined that he was at fault for not depositing Ksh. 7 million on time, as instructed.
High Court Judge Alfred Mabeya ruled that Okundi’s company, Asego Holdings Limited, had no option but to seek compensation from Mayfair Bank for damages, as the auction could not be undone.
Evidence presented in court revealed that the company had missed the court-imposed deadline of 23 October 2023, with the majority of the money being paid only the following day, 24 October 2023.
In his ruling, Judge Mabeya explained that since the auction had already taken place, the request for an injunction to stop the sale was no longer valid. The judge pointed out that it was essential for the company to have made the payment before the deadline.
Okundi had initially approached the court to block the sale of his house, which had been put up as collateral for loans taken by a relative, Edward Kenneth Otieno Okundi. The court had temporarily halted the auction on 19 October 2023, on the condition that Asego Holdings would pay the debt by 23 October 2023.
Okundi claimed to have followed the court order by making a payment of KES 6.75 million through RTGS and Ksh. 250,000 via M-Pesa. He also claimed to have informed the bank’s lawyers and provided proof of payment.
However, Mayfair Bank contested the application, stating that while the M-Pesa payment was made on the 23rd, the RTGS payment was not confirmed until 24 October 2023. The bank argued that it had no choice but to proceed with the sale, as the full payment had not been confirmed by the deadline.
Judge Mabeya emphasized that the court had expected the payment to be made within the specified timeline and that Asego Holdings failed to meet the deadline. He also noted that since the property had already been sold to another buyer, Asego Holdings could only seek compensation for any losses through a legal claim.
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