Businessman Joel Kibe files appeal notice in battle over Old Mutual stake

Kibe is dissatisfied with High Court Judge Josephine Mong'are's ruling that allowed Old Mutual to buy off his stake in the company.

Justice Mong'are, on February 28, allowed Old Mutual to proceed with the planned sale of UAP Tower in Upper Hill, on the condition that Ksh.500 million from the sale proceeds be held in an escrow account managed by the advocates of both parties, pending the hearing and determination of the case.

"I find that the application dated 20th August 2024, although partly merited, cannot be granted as prayed. The interim orders issued by the court at the ex parte stage are vacated and discharged, and the Respondents' applications dated 5th September 2024 and 22nd January 2025 are partly allowed, with the Respondent being allowed to proceed with the intended disposal of LR No. 209/13453 UAP Tower, Upper Hill Road, on condition that a sum Kshs.500,000,000/= from the sale proceeds is held in an escrow account by the Advocates for both the Applicant and the Respondent pending the hearing and determination of the suit herein," ruled Justice Mong'are.

In his notice of appeal, however, the businessman expresses dissatisfaction with the court's failure to issue the prayers sought in his application dated 20th August 2024.

He further seeks an assessment of the amount to be deposited in the escrow account.

In his petition, Kibe had sought to freeze the sale of any Old Mutual assets, the incurring of new debt, and the transfer of funds out of Kenya.

The proposed measures, he argued, would ensure that he is bought out by the insurer.

Kibe has argued that he is apprehensive that the company is about to dispose of various properties, which threatens his right to property guaranteed by Article 40 of the Constitution, given that he is a shareholder of the company through the nominee account held on his behalf under Genghis Capital Nominee Account 17.

"The Petitioner averred that the Company has not made any effort to buy back its shares from the Petitioner and that by an announcement dated 25th October 2023, the Company stated that it had agreed with one of its shareholders to convert shareholders' loans worth 48,183,511 USD and a further loan of 1,927,367,952 into Equity through the allotment of 1,754,572,079 preference shares of Kshs.5.00/=" reads court documents.

"The Petitioner claims that the above transaction is an unlawful attempt by the Company to water down the shareholding of the minority and amounts to the fraudulent acquisition of the Company and that as at 11th April 2024, the Registrar of Companies confirmed that according to his record, the Company only had a nominal share capital of 1.1 billion shares."

In response, the company, in opposing the application, stated that the application is "misconceived, frivolous and has been filed for ulterior purposes which constitute impermissible misuse of the liquidation procedure."