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Waititu in Ksh520M Deal Gone Wrong, Could Lose Ksh52M

Solar House is a commercial building located along Aga Khan Walk

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Former Kiambu Governor Ferdinand Waititu risks losing Ksh52 million he paid as a deposit for a prime city property in the Central Business District (CBD) after his company failed to complete the full transaction.

The property in question is Solar House, a commercial building located along Aga Khan Walk and off Harambee Avenue. It offers quality office space and is easily accessible.

The seller, General Properties Limited, sought a High Court endorsement of its decision to withhold the deposit and terminate the sale agreement dated May 30, 2018. They accuse the former Governor of breaching the terms of the sale agreement.

Transacting using his company, Saika Two Estate Developers Limited where he is also a Director, Waititu paid a 10% deposit for the property amounting to Ksh52 million.

However, Waititu’s firm was unable to pay the Ksh468 million balance within 90 days as stipulated in the purchase agreement.

READ>>Investing In Real Estate: Get These Points Right And Reap Big

“It was a term of the agreement that upon default by Saika, the General Properties Ltd had the right to rescind the agreement and forfeit the 10 percent deposit as liquated damages for breach,” GPL Director Charles Muhia noted.

Saika contested the firm’s decision to withhold the deposit while rescinding the agreement. GPL blamed Saika for paying the deposit without first securing the financing required to complete the transaction.

“Saika proceeded to execute the sale agreement and paid the deposit without first securing bank financing,” GPL noted.

GPL further maintained that Waititu’s company failed to pay up despite being granted an extension of the 90-day period to complete the transaction after paying the deposit.

“It was a condition of the agreement that time was of essence and that the balance of Sh468 million was to be paid to the vendor advocates within 90 days from May 30, 2018. The defendant (Saika) has blatantly breached the conditions in the agreement,” the firm asserted.

Waititu was impeached in January 2020 under a cloud of allegations of corruption and abuse of office.

READ>>Waititu Was Only Scared of God and Hot Porridge. He Ended Up Trembling Like a Leaf






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MARTIN SIELEhttps://loud.co.ke/
Martin K.N Siele is the Content Lead at Business Today. He is also a Quartz contributor and a 2021 Baraza Media Lab-Fringe Graph Data Storytelling Fellow. Passionate about digital media, sports and entertainment, Siele also founded Loud.co.ke
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