Appellate court issues preservation orders on Sh 400M invested in Stay Online K. Ltd

Businessman Kirimi Koome giving his testimony at a Nairobi court in Sh 400 million disputed tech company. PHOTO/Suek

The Court of Appeal has issued preservation orders of contested Sh 400 million held in a bank account of Stay Online (K) Limited.

This is after Kenyan businessman Kirimi Koome challenged the High Court decision declaring Rwandese businessman as the beneficial owner of Stay Online (K).

Appellate judges Patrick Kiage, Pauline Nyamweya and Mwaniki Gachoka ruled that the money held in three accounts at the United Bank of Africa should not be dealt with in any way pending the determination of the intended appeal.

“The monies in the three bank accounts are hereby preserved and shall not be withdrawn, transferred or in other way dealt with pending the hearing and determination of the intended appeal,” the three-bench judges ruled.

Koome moved to appellate court seeking orders to suspend the decision and preserve the Sh 400 million which had been injected into the company.

Currently, there is an order from the High Court judge Josephine Mong’are that declared Koome as the sole owner and director of Stay Online.

Muhinyuza was also declared as the beneficial owner of the company by Justice Alfred Mabeya.

The two businessmen started fighting for the control of the said company which was registered in April 2023, only three months after it had started operations.

The Rwandese told Justice Alfred Mabeya that he is the beneficial owner of the company which has other branches across East Africa .

He told the court that most of the money invested in the company came from merchants after he conceptualised the company and got Koome to register it and be the Kenya director.

It was his submission that things started off well for the company until three months later when Koome started failing to respond to his communication regarding the business.

On the other hand, Koome argued that he was the registered owner and sole shareholder of the said company as proved by documents from the registrar of companies.