Kenyan Businessman Buzeki Faces Sh864.7 Million Bank Payment

A court has ruled against Buzeki Enterprises in a debt dispute with I&M Bank. The case stemmed from a business transaction involving the purchase of trucks and trailers.

Background of the Dispute

Buzeki Enterprises agreed to purchase over 100 trucks and trailers from RT (East Africa) Ltd. and issued promissory notes totaling Sh864.7 million to cover the cost. The court determined that a promissory note signed in 2016 clearly required Buzeki Enterprises to pay a fixed amount on November 30, 2016.

Transfer of the Note

RT, a client of I&M Bank, subsequently transferred the promissory note to the bank in exchange for financing. When the repayment date arrived and no payment was received, I&M Bank initiated legal action as the legal holder of the note. The judge emphasized that the note contained no conditions, so none could be added later, and the written document alone controlled the agreement.

Buzeki Enterprises’ Argument

Buzeki Enterprises argued that repayment was contingent upon the sale of Taru Ranch in Kwale County. They claimed the debt was not due because the sale did not occur.

Court’s Decision

The court rejected this explanation, stating that the alleged condition was not documented in the note and was introduced too late in the proceedings to be considered. The judge found that I&M Bank had the right to demand payment because RT had legally assigned the note to the bank. Buzeki Enterprises was ordered to pay Sh864.7 million, along with accrued interest and legal costs.