Kenya: Businessman Sues Friend Turned Foe Over Sh167 Million Debt

Nairobi — A businessman has moved to court seeking to institute private prosecution against a former friend who failed to pay a Sh167 million debt owed to him.

In an application filed under a certificate of urgency, Schon Ahmed Noorani claims he advanced a loan of Sh167 million to Rajendra Ratilal Sanghani, which he has refused to pay.

Noorani alleges that Rajendra issued him with postdated cheques to hold as security for the loan advanced and that they were for the payment of principal and interest accrued.

“Rajendra without notifying and informing Noorani, proceeded to cancel the cheques issued as security which led to them being dishonored when he proceeded to deposit them,” the court documents stated.

On July 18, 2018, Noorani says he lodged a complaint against Rajendra with the Director of Criminal Investigations (DCI) who opened an inquiry file 126 of 2018 to investigate his criminal conduct in the issuance and later cancellation of the cheques.

On November 12, 2018, the Director of Public Prosecutions (DPP) recommended for the closure of the investigation into the complaint on account that there was no criminal culpability on Rajendra.

In 2021 however, Noorani requested for a review of the DPP and DCI’s decision.

“The refusal by the respondents to investigate and prosecute the interested party (Rajendra) on the offence of obtaining money by false pretenses without reasonable cause and there is no good reason that a prosecution should not be undertaken,” he stated.

Noorani now wants the court to commence private prosecution against Rajendra for obtaining money by false pretenses.

The DPP and DCI have been listed as the first and second respondents while Rajendra as the interested party.

Documents filed in court show that Noorani loaned his friend turned foe the money between August 2012 and April 2018 and the agreement was that it would be repaid with interest.

The total amount loaned was Sh477 million and Rajendra paid the amount leaving a balance of Sh167million.