Companies
Mohammed Ali gets nod to sell Brookside cows, plant over Sh.05m debt
Wednesday July 05 2023
Nyali MP Mohammed Ali at Parliament Building Nairobi on November 16, 2022. PHOTO | DENNIS ONSONGO | NMG
Nyali MP Mohammed Ali has been allowed by the High Court to seize the property of Brookside Dairy Limited over a debt of Sh500,000 arising from a defamation case.
The court on July 3, allowed the outspoken legislator to instruct auctioneers to attach assets of the company, which is associated with the family of former President Uhuru Kenyatta, over a debt of Sh500,051.
The debt arose from costs awarded to Mr Ali by the court in November 2022 after winning a lawsuit the company had filed against him.
The MP was awarded costs after a petition filed by the milk processing company, seeking to gag him as well as damages for business losses.
Mr Ali’s lawyer Adrian Kamotho instructed Fisra Auctioneers to attach and sell the company’s assets through public auction and recover the amount.
“Accordingly, we hereby authorise and instruct you to execute the annexed warrants of attachments and sale, upon all known movable property of Brookside Dairy Limited, for the recovery of the decretal sum ordered by the High Court of Kenya, on the 11th day of October 2022, and for the settlement of all costs, charges, penalties, interest and expenses arising therefrom or incidental to the execution of our instructions,” the letter to the auctioneer stated.
In the proclamation note dated July 4, 2023, the movable property that the auctioneers have listed for attachment includes 40 dairy cows valued at Sh150,000 and one cooling plant valued at Sh400,000 in Mundoro, Gatundu South in Kiambu county.
The auctioneers have also listed computers valued at Sh20,000 as well as seven reception seats (Sh6,000), office desks (Sh30,000), office chairs (Sh20,000) and printers (Sh14,000).
The note indicates that the properties they intend to attach are in fair condition.
The documents indicate that the auctioneers are required to return the warrant on August 30, 2023 “with an endorsement certifying the day on which and the manner in which it has been executed or why it has not been executed”.
The company had sued the MP in July 2022 over allegations that he incited the public at a political rally to cause economic and commercial harm to its business by boycotting its products.
The firm sued him over alleged gross violations of constitutional rights and sought from the MP an unspecified amount of money for damages suffered.
The milk processing company claimed that the MP had alleged that it was exploiting and financially oppressing dairy farmers.
The suit was, however, struck out in October 2022 by Justice Hedwig Ong’undi after the court found that the claim was filed in the wrong forum – Constitutional and Human Rights Division.
Judge Ong’undi delivered the ruling following a preliminary objection filed by Mr Ali challenging the powers of the Constitutional and Human Rights Court to determine the issues raised by the company.
