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Posta Faces Auctioneers Over Sh20 Million Debt

N

Nyakundi Report

Newsroom 1 min read

This archive report was first published on 30 October 2019.

On October 29, 2019, Mbusera Auctioneers attached property and office equipment of the Postal Corporation of Kenya (Posta) at the General Post Office in Nairobi for failing to pay a businessman over Sh20.3 million for breach of contract.

The auctioneer, R W Mbuthia, has attached 700 office chairs valued over Sh550,000, 500 computers valued over Sh500,000, a motor vehicle valued at Sh700,000, and other assorted office equipment.

The businessman, Gerald Kamondo Njuki, trading as Geka General Supplies, had been leased a parcel of land by the corporation in Thika for a period of five years but the parastatal failed to perform on its part.

High Court commercial division judge Rachel Ng'etich ruled the case in favour of Mr Njuki and ordered Posta to pay the trader Sh20 million for breach of contract after it dishonoured a lease deal to sublet a parcel of land in Thika.

Posta has filed an appeal to challenge the award, saying the trial judge erred in awarding the businessman the money before it established the authenticity of the letter of offer and execution of the same.

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