Kasarani Member of Parliament Ronald Karauri has filed a suit in the High Court seeking to preserve over Sh71 million held in an escrow account amid a loan repayment dispute.
The MP accuses Compugeen Africa Limited, a technology company, and Conrad Law Advocates LLP of withholding the funds despite an agreement to refund the loan. Karauri wants the court to restrain the respondents from accessing or transferring the USD 552,000 (approximately Sh71.4 million) held in a UBA Kenya escrow account in Upper Hill.
He further requests that the money be transferred to his Ecobank Kenya account within 14 days, citing a loan agreement that made the funds refundable regardless of the financing outcome.
Background of the Dispute
- In March 2025, Karauri advanced the funds under an agreement where the money was held in escrow to facilitate Compugeen Africa's financing from a third party.
- The agreement stipulated repayment within ten days, plus 10% compensation, irrespective of whether the financing succeeded.
- Compugeen Africa acknowledged the debt and requested an extension to April 28, 2025, but failed to repay by the revised deadline.
Karauri claims that despite multiple demands, neither the principal nor the compensation has been paid. He fears the funds may be withdrawn or moved out of the court's jurisdiction, which could undermine any future judgment.
He also notes that the escrow account is controlled by advocate Conrad Maloba and expresses concern over the difficulty of enforcing repayment since Compugeen Africa's directors are Nigerian nationals with no attachable assets in Kenya.
Karauri has presented email exchanges and demand letters indicating the company's acknowledgment of the loan and their request for more time to settle the debt.
The MP urges the court to either preserve the funds pending case determination or order their immediate release to him.
