Michael Nyachae Named in Sh35 Million Kisii Land Fraud Case
A dispute over prime land in Kisii town has escalated into a major court battle involving companies linked to the late politician Simeon Nyachae.
Shareholders have filed suit accusing directors, including Michael Moragia Nyachae, of fraudulently selling company land valued at over Sh35 million.
The High Court has now allowed the case to proceed to a full trial.
read:Ramji Brothers Seek Removal of DPP Renson Ingonga Over Sh350 Million NSSF Land Case
Disputed Sh8 Million Sale
Court documents show that the property was allegedly sold in May 2021 for Sh8 million.
Shareholders argue that the land was worth more than Sh35 million at the time.
They claim the transaction undervalued a key company asset and was conducted without transparency.
Justice Freda Mugambi ruled that the case met the legal threshold under Sections 238 and 239 of the Companies Act, 2015.
She allowed shareholders to proceed with a derivative suit on behalf of:
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Sansora Bakers & Confectioneries Limited
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Sansora Investments Ltd
Allegations of Conflict of Interest
The suit also names director Jamaludin Shamsudin Alibhai Rajwani.
Shareholders allege that the property was sold to Pine Tree Real Estate LLP, a firm reportedly linked to Rajwani’s nephew.
They argue that the directors sidelined other shareholders and ran the company without proper accountability.
Michael Nyachae, who currently chairs the Development Bank of Kenya, is accused of participating in the disputed transaction.
read:Stephen Mburu Paul Charged in Sh23m Ruiru Land Fraud
Court Orders Issued
Justice Mugambi ordered the directors to produce:
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The sale agreement
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Transfer documents
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Proof of payment of the Sh8 million
The court also barred any further transfer or charging of the property until the case is determined.
In addition, the directors must supply within 30 days:
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Books of account
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Bank slips confirming payment
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Audited financial statements
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Company bank statements from 2021 to date
Admission of Procedural Breach
In his response, Michael Nyachae admitted that the company failed to follow formal procedures.
He stated that since incorporation, the business operated without written resolutions and relied on informal practices.
He maintained that the directors acted in good faith.
However, shareholders argue that procedural lapses cannot justify selling a Sh35 million property for Sh8 million without approval.
read:James Mwangi Ordered to Deposit Sh10m in Land Appeal
Full Trial Set for 2026
The case will proceed to a full hearing on May 11, 2026.
If the court finds that the property was deliberately undervalued or sold to a related party without transparency, the directors could face serious consequences, including possible disqualification.
The Kisii land fraud case is expected to test corporate governance standards in family-linked companies and the protection of minority shareholders.