This archive report was first published on 8 January 2020.
Published on January 8, 2020, The Standard reported that Kenya Commercial Bank (KCB) defended the title deed for Weston Hotel, a property linked to Deputy President William Ruto, in a Sh1 billion loan dispute.
The bank claimed it loaned the hotel more than Sh1 billion after verifying the land document, which was deemed genuine by the Lands ministry.
According to court papers, KCB conducted a search at the Lands ministry and received assurance from the Lands Registrar that the title deed was authentic.
However, the Kenya Civil Aviation Authority (KCAA) claims to own the land and wants the hotel demolished, alleging that the land was grabbed from them.
Weston Hotel borrowed money from KCB in 2014 and 2015, with the first loan being Sh350 million and $1.5 million (Sh150 million), and the second loan being Sh700 million.
"It is on this assurance that the interested party agreed to advance the loan facilities to the second respondent (Weston) on the firm understanding, belief and expectation that in case of default, it would be entitled to exercise its statutory power of sale over the suit property," KCB stated in court papers.
However, the National Lands Commission (NLC) later ruled that the hotel was built on land grabbed from KCAA, ordering Weston to pay for the 0.773-hectare parcel.
KCB's Legal Services Director Bonnie Okumu told the court that the bank stands to lose if the land is alienated in KCAA's favour, and that Weston has not finished repaying the loan.
