Rwandan investor wins back $2.6m company from Kenyan trader

A Rwandan investor has won a spirited legal battle in Kenya over the ownership of a Ksh400 million ($2.6 million) online company, which he had been defrauded by a Kenyan trader.

In the historical judgment, which lawyers say will restore and woo back investors who had run away due to corrupt dealings, Desire Muhinyuza, has been given back to Stay Online Limited (SOL).

Justice Alfred Mabeya directed Mr. Kirimi Koome to return all the shares of SOL to Mr. Muhinyuza.

Mr Koome was also ordered to pay Mr. Muhinyuza interest on the $2.6 million at court rates until payment is made in full.

The millions had been frozen by the Directorate of Criminal Investigations (DCI) officers when Mr Muhinyuza complained he had been defrauded by the company by Mr. Koome.

Further, the judge directed Mr. Koome to return some $100,000 he had received from Mr Muhinyuza as tax money but converted the same to personal use.

After establishing Mr. Muhinyuza had proven the company belonged to him, the high court declared him the sole owner and not Mr. Koome as he purported.

Mr Muhinyuza had been defrauded by the business entity by the Kenyan entrepreneur in April 2023.

Vesting Stay Online Limited back to Mr. Muhinyuza, Justice Alfred Mabeya, who heads the Commercial Division of the High Court, ruled “I find and hold that Mr. Muhinyuza is the beneficial owner of Stay On-Line (SOL). Kirimi Koome committed fraud by not filling the Form of beneficial ownership property at the time of incorporation of the company.”

No tax

Immediately after the decision was delivered virtually, Mr Muhinyuza through his lawyer Danstan Omari said “This High Court judgment has restored the confidence of investors who are defrauded their property by Kenyans who are hell-bent.”

The investor thanked the Judiciary for salvaging his company and investment which almost slipped away.

On the money Mr Koome had received to pay taxes, the judge said “The demand and pocketing of $100,000 was without basis. No tax was paid out of the money. The same is recoverable from Mr Koome (the first defendant.”

The judge noted that the investor had complained to the Registrar of Companies about the actions of Mr Koome whom he had appointed to register the company while he regularised his immigration status.

He has since been issued with a work permit.

Justice Mabeya said Mr Muhinyuza is the one who initiated and caused the registration of SOL on April 14, 2023, of the company by “wiring from Rwanda the capital injection of $29,000 for the company to start its operations.”

Justice Mabeya dismissed the counter-claim by Mr Koome in which he sought to be declared the owner of SOL.