Kenya: Billionaire Wins Round One of Divorce Dispute

[mmasai]

The East African Standard (Nairobi)
October 31, 2006
Posted to the web November 1, 2006
Nyakundi Nyamboga
Nairobi
Muslim men may soon be able to recover from their wives any property
bought using their money.This reality arose in a ruling by a High Court
judge in a case by a Tanzanian billionaire businessman against his
Kenyan ex-wife.The ruling was given in a case where Mr Mohammed
Bakhresa has sued his ex-wife, Ms Nasra Ahmed, seeking to repossess
property she acquired during their four-year marriage.Mombasa High
Court Judge, Justice David Maraga, yesterday ruled that a law that
criminalises Benami transactions in India does not apply in
Kenya.Benami transactions refer to purchases made in the name of
another person who does not pay for the property, but merely lends his
name, while the real ownership is vested in the person who actually
paid for the property.
It was the practice in India for men to recover property from their
wives and children on the basis that the money used to purchase the
property had come from them. This practise had been in place since the
1800s until 1988 when the Indian Parliament outlawed all such
transactions by passing The Benami Transactions Prohibition Act.
Currently, a man in India is not allowed to recover such property from
the wife. The Act made it illegal - punishable by a jail term of up to
three years - for a man to enter into such a transaction.
Maraga also ruled that two cases decided in 1954 and 1966 applying the
Benami transaction to Kenyan Muslims were still persuasive.Bakhresa won
round one of his bid when the court temporarily restrained Nasra from
dealing with the contested properties and bank accounts.The properties
include 13 residential properties in Mombasa, two luxury motor boats
and five sleek cars including a custom-made Mercedes Benz valued at
Sh17 million.Justice Maraga said he was satisfied that Bakhresa had, on
the face of it, shown he had a case likely to succeed when it is heard
on its merits by a trial judge.Immediately after the ruling, Nasra's
lawyers, Mr Japheth Asige and Mr Paul Mwangi, complained to the court
that was packed by bui bui clad women that it had severely compromised
Nasra's livelihood. They said they would appeal.
The judge advised them to file a formal application to vary the
restraining order to enable Nasra access some money for her daily
upkeep pending the determination of the dispute.When Nasra's marriage
to Bakhresa lasted, they also had boats - MV Dar and MV Casaurina - for
their exclusive use whenever they took time off to relax in Lamu.Nasra
was married to Bakhresa on January 9, 2002 at a private Islamic
ceremony in Mombasa. The billionaire had paid Sh30,000 as dowry.
Bakhresa is the managing director of Kampala-based Bakressa Grain
Milling (U) Ltd and Thika based Bakressa Food Products (K) Ltd. He also
runs other businesses in Malawi.Bakhresa terminated the romantic
relationship on June 19, this year.Three days later the couple
presented themselves before an advocate of the high court before who
Bakhresa allegedly agreed to a distribution of the matrimonial
property.
She transferred to him the matrimonial house in Nyali, five cars
(Mercedes Benz, Mitsubishi Lancer, Toyota Land Cruiser, Nissan double
cabin and Toyota Rav4) and Sh71 million as a full and final settlement
of all the matrimonial properties out of the dissolved marriage.Nasra
says whatever property is in her name today was either given to her as
a gift or acquired from the money she saved from the millions of
shillings her husband provided for her maintenance.Others were acquired
through her direct and indirect contribution to the running of the
family businesses.
She says the properties were acquired for her sole benefit because
Bakhresa had allegedly, on several occasions, made it clear that he was
not interested in properties that earned meagre amounts of money.
However, her billionaire ex-lover does not think so. He filed a suit in
August 2006 seeking to recover from her all properties she acquired
during the marriage. These include 13 developed plots, two boats, five
cars and millions of shillings held in eight accounts at various
banks.He accuses his ex-wife of fraudulent misrepresentation that
allegedly led him to sign an agreement on June 21 this year where he
was to get away with only Sh71 million, a house and five cars out of
their multi-billion shillings property.
He wants to be compensated for the loss of rental income accruing from
the 13 housing properties, income accruing from the operation of the
two boats, proceeds from the various bank accounts and loss of use of
five cars.The suit is a test case for the future of good fortune for
married women in Kenya.Bakhresa is represented by Mombasa advocates
Charles Kioko, Munyithia & Company.
The court yesterday confirmed earlier orders temporarily freezing all
Nasra's bank accounts.It also confirmed the appointment of an estate
agent to collect all rents from the contentious properties. She is also
not to transfer any of the properties in her name.
Nasra's case comes barely six months since a local millionaire, Mr
Suresh Kantaria, was ordered by the High Court in Nairobi to pay Sh100
million to his ex-wife after the dissolution of their marriage. A
prominent Nairobi lawyer, Mr David Mereka, was also in 2004 ordered by
the Court of Appeal to share his property with his wife after their
marriage was dissolved by the High Court.

________________________________________

[Mtoahoja]

Doesnt make sense, the judge is corrupt.

[Richard]

What a conclusion from Mtoahoja this time around.....

[K-Forum]

THIS ARTICLE HAS BEEN MOVED TO www.kforumonline.com AND WILL SOON BE
BLOCKED AND REMOVED. PLEASE CONTINUE ALL DISCUSSIONS/ RESPONSES IN THE
NEW SITE.
THANK YOU.
K-FORUM
________________