Auctioneers descend on Posta over failure to pay trader Sh20m

Auctioneers have attached property and office equipment of the Postal Corporation of Kenya popularly known as Posta for failing to pay a businessman over Sh20.3 million for breach of contract.

Mbusera Auctioneers descended on the corporation’s property at the General Post Office in Nairobi and proclaimed property ranging from office equipment to motor vehicles.

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 warrant of attachment was received under protest by the Post Master General on October 29.

A deputy registrar at the commercial division of the high court has directed the auctioneers to return the warrant executed by December 4.

BREACH OF CONTRACT

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.

Mr Njuki, through lawyer Titus Koceyo sued the parastatal for breach of contract and sought to be paid Sh205million but the amount was slashed to Sh20 million.

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

Njuki, who was trading as Geka General Supplies, had sued the State corporation claiming Sh205 million compensation but High Court commercial division judge Rachel Ng’etich slashed this amount on grounds that the proprietor did not incur any expenses in developing the plot.

“This court finds that lawyer Titus Koceyo has established there was breach of contract as Geka General Supplies never entered into a two-acre plot leased to it three years ago by PCK,” Justice Ng’etich ruled.

The award to Mr Njuki will attract interest at court rates.

Posta was also directed to pay costs of the litigation.

APPEALLED JUDGEMENT

Geka had applied for a plot from the State firm to develop it by building stalls and a garage at a monthly rent of Sh1,846,200 for a period of five years and six months.

The premises were never availed to it as per the lease agreement and after several demands from Mr Njuki, Posta then charged him with the responsibility of removing the existing tenants.

The judge said Geka was expecting a monthly income of Sh3,360,000 from renting out the stalls and leasing the garage to car mechanics.

However, 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.

Posta says it receives funding from the government and it should be given time to source for the same to pay the claimant.

But now that the property has been attached they can be sold anytime.