Cabinet Secretary Alfred Mutua Entangled in Sh60 Million Hotel Shares Row

A British investor has taken legal action against Tourism Cabinet Secretary Alfred Mutua, seeking payment of Sh60 million for the purchase of his shares in a luxurious hotel in Nairobi.

Mr. Ubhi Ripthuman Singh states that Dr Mutua purchased 15 shares of Brazilian Rodizio Ltd based in Lavington on October 6, 2022. The agreement had dictated the deposit of funds in a joint escrow account within 30 days of the share purchase, which Dr Mutua failed to do. A notice was given to Mr Mutua on June 28 this year to complete payment amounting to Sh60 million. Due to the lack of response, Mr Singh made the resolution to file a legal complaint against Dr Mutua, who now acts as a registered director as well as a controlling stakeholder.

Despite sharing the role of co-director, Mr Singh claims that he has had no involvement in the management or daily functioning of the firm, as evidenced in court. Records show that in March 2023, Mr Singh bought 30% ownership of the business for Sh30 million from Ms. Loroupe. Several weeks later, he sold 15 shares to Dr Mutua, effectively elevating him as the biggest stakeholder. Mr Singh claims their agreement was to convene a meeting of directors to ratify the move, after which he would transfer ownership to Dr Mutua through an official procedure. However, no such meeting has materialized and Mr. Singh's ownership stakes remain in limbo.

The UK national is troubled about being accountable to external parties and stakeholders should the company's functions be mismanaged. After discovering several withdrawals from two NCBA accounts in the company's name, which he neither consented to as a co-director, Mr Singh grew concerned. Despite being entitled to receive them, his requests for copies of various company documents relating to the 2022/23 financial year have allegedly been ignored by the two parties, despite his numerous letters.

Mr Singh is seeking legal intervention to compel his fellow directors to furnish him with various financial documents pertaining to the hotel. These include audited accounts, income tax returns from the previous year, and financial statements for the upcoming fiscal year. Additionally, Mr. Singh is requesting income statements, cash flow statements, and reports on debtors and creditors, among other records.