Ex-CS Aisha Jumwa Fight To Retain Her Sh215M Runda Home From Liquidation Over Sh60M Debt

Former Cabinet Secretary Aisha Jumwa has moved to court seeking to stop Bevaj Furniture limited from commencing any liquidation proceedings against her over Sh60 million, arising from the purchase of a property worth Shm215 million.

The former CS is seeking a temporary injunction restraining Bevaj Furniture ltd from commencing any liquidation proceedings against her on the basis of a demand dated March 18, 2024 pending hearing and determination of the case.

The dealer had given Jumwa 21 days to pay the stated amount in full plus interest following the purchase of a property Title Number 12672, L.R. NO. 7785/951 (Original number 7785/10/689, NAIROBI/BLOCK 196/921.

“Further take notice that failure to pay the aforesaid amount shall result in Bevaj Furniture ltd filing for a bankruptcy order against you,” reads the statutory demand.

Jumwa, however, says the demand is improper, irregular and an abuse of court process as the same seeks to arrogate to the court jurisdiction to determine a dispute that is solely within the mandate of an arbitrator, as per the agreement signed by the parties.

She further stated that the demand was an attempt to embarrass and present her as an individual that is wholly incapable of settling her debts.

The politician said there is no evidence of her insolvency and or inability to pay the debt, and the principle of exhaustion demanding that all alternative dispute resolution mechanisms, as provided for, must be exhausted before any suit is commenced.

The former CS argued that Bevaj Furniture ltd is in breach of contract as it did not provide for the extra furnishings and decorations.

“Any alleged failure by the Applicant ( Jumwa) to complete payment of the purchase price can only be termed as a breach of contract, which falls squarely within the definition of a dispute arising out of the Agreement, and within the mandate of the Arbitrator appointed according to the terms of the Agreement,” she said.

She said it is trite that where an Agreement outlines the manner of dispute resolution, parties are not at liberty to seek alternative redress unless and until the said mode of dispute resolution is applied to finality.

Jumwa maintained that she is a salaried person capable of paying her bills if and when they become due. She was not, by any measure, insolvent or incapable of settling her debts, she added.

“Consequently, this Court lacks jurisdiction to entertain or hear this matter. It is therefore in the interest of justice and fairness that this Court sets aside the Statutory Demand dated 18th March 2024 and refers the dispute to arbitration in accordance with the agreement between the parties,” pleads the former public service CS.

Jumwa has been sued by Bevaj Furniture Ltd who wants her declared bankrupt for failing to pay a Sh60,000,000 debt for the purchase of a house in Nairobi’s upmarket Runda estate.

Jumwa identified the multistorey palatial home and signed a sale agreement for the property in March last year for Sh215 million.

Prior to the execution of the sale agreement, Roselyn Wambui, Director of Bevaj says Jumwa approached her to sell her house to her. It was on sale at a price of Sh250 million.

Jumwa negotiated the price and it was brought down to Sh215 million. Wambui subsequently instructed her advocates to draw a sale agreement and send it to Jumwa’s advocates.

“She confirmed receipt of the sale agreement and at that point there was no issue with the price but she confirmed that she was being financed,” says Wambui.

“But it later turned out that Jumwa could only qualify for a loan of Sh145 million from her financiers (KCB-Bank Limited)” she adds.

The agreement was then adjusted to capture the extra amount of Sh70 million which Jumwa was not being financed for.

Wambui says Jumwa paid Sh10 million and left a balance of Sh60 million. She was to pay this amount in 12 months.

She claims the CS sent her a message on January 4 alleging that the house was overpriced and she should consider bringing it down to which she declined.

Wambui then wrote a demand to Jumwa’s advocates in February this year asking them to honour the balance of Sh60 million.

On March 6, Wambui said they responded saying “they will not make any payment and they were ready to receive any court summons clearly acknowledging that the dispute was one headed to court”.

The property measures 0.2448 hectares.

Wambui in response to Jumwa’s application says “it is an attempt to delay the overdue payment of the balance of the purchase price which was voluntarily agreed upon by the parties”.

She has maintained that the court has jurisdiction to handle the dispute as the sale agreement was executed by the parties without any undue influence.