Following his court appearance on Friday, November 29, 2024, police detained Savannah Clinker Company proprietor Benson Sande Ndeta.
The investigation into Ndeta’s involvement in a Ksh 700 million fraud and forgery scheme at Savannah Cement began in 2019.
He appeared before Milimani Principal Magistrate Gilbert Shikwe, where he denied all 11 charges, including making documents without authority, obtaining execution of a security by false pretences, and obtaining credit by false pretences.
After hearing the prosecution’s arguments, the court ordered Ndeta to stay at Muthaiga Police Station until Monday, December 2, when it will rule on his bail application.
This decision follows objections raised by the prosecution to his release on bail.
The prosecution argued that Ndeta’s release could pose a flight risk, citing the gravity of the charges and the involvement of his co-accused, Charles Hill Jr., who is currently based in the United States.
Cecil Miller, Ndeta’s lawyer, urged the court to grant him bond, highlighting his status as a Kenyan citizen with a family and a residence in Karen, Nairobi.
Miller also clarified that Ndeta’s property holdings reflect his financial situation and that the charges originate from a bank loan his client took for business purposes.
The Director of Public Prosecutions (DPP) has directed that Ndeta and Hill Jr. be charged with serious offenses based on evidence uncovered by investigations.
Ndeta and Hill Jr. allegedly signed corporate guarantee documents for a USD 35 million loan facility, which Absa Bank later approved, giving rise to the charges.
The investigation revealed that the bank approved the loan based on these allegedly forged documents.
The DPP’s letter to the Directorate of Criminal Investigations (DCI) noted that there was clear evidence of irregularities, with Ndeta and Hill Jr. signing the corporate guarantees in a manner that amounted to forgery.
The DPP also pointed out that Hill Jr., an American based in Delaware, presented himself as a director of Savannah Heights and a major shareholder in Savannah Cement, despite having no legal claim to the company’s shares.
The investigation into the case has revealed that the acquisition of 4,500 shares in Savannah Cement by Ndeta, a move that made directors Donald Mwaura Kiboro and John Gachanga minority shareholders, led to significant internal company strife.
The boardroom disagreements escalated, resulting in Kiboro and Gachanga’s absence from board meetings, which created difficulties in confirming minutes and approving resolutions.
The case also involves the failed share sale between Kiboro and Falcon Ventures Holdings LLC, represented by Hill Jr., in 2017. Kiboro had transferred 300 shares in Savannah Heights to Hill Jr. for Ksh. 700 million, but the transaction fell through after Hill Jr. failed to make the final payment.
As a result, the investigation discovered that the parties involved, including Ndeta and Hill Jr., had used forged documents to facilitate the fraudulent activities surrounding the loan.
Some political figures, including Wiper party leader Kalonzo Musyoka, have described Ndeta as a victim of political targeting.
His arrest came at a time when he is involved in a bid to acquire Bamburi Cement, where he is competing against Tanzanian conglomerate Amsons Group.
Some have speculated that the charges and timing of his arrest are part of a broader strategy to undermine his bid, with Ndeta offering a higher bid (Ksh. 27.78 billion) compared to Amson’s Ksh. 23.59 billion.
As the legal proceedings unfold, the court will decide Ndeta’s bail status, and his defense team plans to challenge the charges, asserting that they are politically motivated and aimed at thwarting his business endeavors.
