Directors Under Investigation for Allegedly Ousting Ailing Colleague from Company

Two directors of Steam Systems Ltd are under investigation by the Directorate of Criminal Investigations (DCI) for allegedly conspiring to remove a founding director from the company by exploiting his health condition and advanced age.

Minesh Kantibhai Patel and Nayankumar Vithalbhai Patel are accused of colluding with staff at the Business Registration Service to oust Timothy Benson Kamande, a founding director of the engineering hardware company.

According to advocacy group Concerned Citizens Kenya, the alleged corporate maneuver has inflicted severe harm on Kamande, causing “physical, psychological, spiritual and economic damage.” The group claims Kamande has suffered from “shame, humiliation, fear and isolation,” along with trauma symptoms including “numbness and headaches, depression, fear of authority, flashbacks and intrusive thoughts, decreased self-esteem, introversion and lethargy.”

Official Records Contradict Resignation Claims

In response to inquiries from the lobby group’s President Frank Awino, the Registrar of Companies has revealed discrepancies in the company’s filing history. According to Zacharia Mwangi, writing on behalf of the registrar, “There are no records to indicate that Kamande ceased being a director of Steam Systems Ltd or transfer his shares to someone else.”

The registrar noted that while Kamande’s name appears in annual returns up to 1994, it vanishes from company records starting in 1997. Crucially, the purported letter of resignation dated March 14, 2022, allegedly signed by Kamande, along with a transfer deed, were never properly filed with the registrar.

“The letter of resignation dated March 14, 2022 signed by Kamande and the transfer deed were not filed with the registrar as indicated in the timelines and they could not trace them from the records of the company,” Mwangi stated.

Investigation Stalls

Kamande had filed a formal complaint with the DCI headquarters on December 14, 2021, assigned case number DCI/GEN/COMP.6/11/2021/2775. However, authorities have not provided any updates on the progress of their investigation, raising concerns about the pace of justice in corporate governance cases.

When contacted for comment, the implicated directors did not respond to inquiries sent via email, text message, and WhatsApp. Attempts to reach Minesh Patel by phone were unsuccessful as his line was consistently busy.

Steam Systems Ltd, located off Enterprise Road, specializes in engineering hardware, industrial equipment, industrial bearings, chains, and safety equipment. The company has been operating in Kenya for decades, with official records showing Kamande as one of its founding directors.

The case highlights ongoing concerns about corporate governance practices in Kenya’s private sector, particularly regarding the protection of shareholders’ rights and the potential for abuse when directors face health challenges or advanced age.

Legal experts suggest this case could set an important precedent for how similar situations are handled in the future, with potential implications for corporate governance regulations and shareholder protections in Kenya.