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Dyer & Blair Investment Bank, owned by Kenyan tycoon Jimnah Mbaru, has emerged triumphant in a Ksh465 million ($3.3 million) legal battle against former KCB Group Director John Kung’u Kiarie.
The court’s decision has ended Kiarie’s bid to recover his investment in the Nairobi-based brokerage firm. Kiarie had sought the intervention of the Supreme Court to compel Dyer & Blair Investment Bank to reimburse him the $3.3 million that he had initially invested.
Alleging a conspiracy between Mbaru’s Dyer & Blair and the anti-fraud unit, Kiarie claimed his funds were frozen two decades ago, and his investment returns were under-declared.
In reaction, the Court of Appeal dismissed Kiarie’s second appeal application, deeming his concerns confined to his interests. The judges clarified that the issues brought forth primarily revolved around his business association with the investment bank and the ensuing dispute.
They emphasized the absence of significant matters of public importance or novel legal questions that warranted consideration by the Supreme Court.
In March 2003, Kiarie had invested Ksh91 million ($652,000) in a Treasury bond through a brokerage firm.
However, he received a paper worth Ksh88 million ($630,000). Acting upon advice from Dyer & Blair Investment Bank, Kiarie sold the security for Ksh91.6 million ($656,000) to reinvest in a higher-yielding Treasury bond.
Unfortunately, Kiarie’s plans were thwarted when warrants were issued, allowing the Anti-Banking Fraud Unit to investigate his account. Subsequently, his account was frozen, and he faced charges in a Nairobi magistrate court for allegedly falsely obtaining Ksh91.5 million ($655,000).
Fortunately, Kiarie was acquitted due to insufficient evidence, and an order was issued to release his funds and lift the freeze. As part of this process, Mbaru’s firm released Ksh67.5 million ($483,000) as the principal amount and interest of Ksh2.3 million ($16,500).
Kiarie, dissatisfied with the outcome, engaged a certified accountant to assess his return on investment. The accountant concluded that he should have earned Ksh465 million ($3.3 million), leading to his pursuit of legal action against the investment bank.
