Kasarani MP Ronald Karauri has asked the High Court to preserve more than Sh71 million held in an escrow account, accusing a technology firm and a law firm of failing to refund a loan advanced to facilitate a financing transaction.
In a suit filed before the High Court, Karauri seeks orders restraining Compugeen Africa Limited and Conrad Law Advocates LLP from accessing or dealing with $552,000 (about Sh71.4 million) held in a USD escrow account at UBA Kenya's Upper Hill branch until the dispute is determined.
The legislator also wants the court to compel the respondents to transfer the money to his Ecobank Kenya account within 14 days, maintaining that the funds became refundable under the parties' loan agreement.
According to court documents, Karauri advanced the money in March 2025 under an agreement in which the funds were to be held in escrow as security to enable Compugeen Africa to secure financing from a third party.
The agreement allegedly required the money to be refunded within ten days, together with compensation equivalent to 10 per cent of the loan amount, regardless of whether the financing arrangement succeeded.
Karauri claims the company admitted owing the money and later requested an extension of the repayment deadline to April 28, 2025, but allegedly failed to honour the revised timeline.
He argues that despite repeated demands, neither the principal sum nor the agreed compensation has been paid.
"Unless this application is urgently heard and granted ex parte in the first instance, the company and the law firm will remove and dissipate the funds or leave the jurisdiction of this court, thereby rendering this suit and any decree issued nugatory, and I will suffer substantial and irreparable loss," Karauri states in his court application.
The MP further contends that the escrow account is under the control of advocate Conrad Maloba and fears the funds could be withdrawn before the case is resolved.
He also raises concerns that Compugeen Africa's directors, whom he identifies as Nigerian nationals, have no known attachable assets in Kenya, making enforcement of any future judgment difficult.
"Compugeen Africa Ltd and Conrad Law Advocates LLP are merely refusing or neglecting to return the USD 552,000 contrary to Clause 5 of the loan agreement without any just cause," Karauri says.
Karauri has attached email correspondence and demand letters which he says demonstrate that the company acknowledged the debt and sought more time to settle it.
He now wants the High Court to preserve the funds pending the hearing and determination of the case or order their immediate release to him.
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