Court halts seizure of tycoon's property

Mombasa tycoon Tahir Sheikh Said, and two of his companies have obtained temporary orders restraining a bank from seizing his assets in regards to a loan.

The orders stopped the bank from alienating or dealing with his assets in respect to accounts held by another company, where he is a majority shareholder over loans allegedly advanced to it.

The trader popularly, known as TSS obtained the order, also restrains Bank of Africa Ltd from dealing with any other securities held by the bank in respect to Juja Coffee Exporters Ltd.

The assets, which the bank was restrained from dealing with, include five parcels of land and a title deed in Mombasa registered in the names of TSS Transporters Ltd and TSS Investments Ltd.

Justice Njoki Mwangi issued the order on condition that the businessman and the two companies shall deposit Sh250 million ($2.5 million) as security in interest-bearing accounts in the joint names of the lawyers acting for the bank and the applicants.

The orders were issued pending hearing and determination of a case filed by Juja Coffee Exporters Ltd, TSS Transporters Ltd, TSS Investment Ltd and the tycoon against the bank and Kaaba Investments Ltd.

The applicants are seeking, among other orders, a declaration that Juja Coffee is not indebted to the bank to the tune Sh480 million ($4.8 million) and Sh490 million ($4.9 million) in its demands, or at all.

In his affidavit, Mr Said said it was never his intention to enter into any liabilities and additional borrowing for any purpose.

The case will be mentioned on September 20.