A fierce legal battle is brewing between two banks that want control of the TSS Grain Miller which was used to secure loans from both National Bank of Kenya (NBK) and Kenya Commercial Bank.
According to reports, TSS Investments which owns TSS Grain Miller was declared bankrupt last year, causing KCB which loaned the owner Sh2 billion, to take over and auction the miller to recover its money
The case has however taken an unexpected turn after National Bank of Kenya (NBK) came out saying it also gave a similar amount of loan to the investor and now wants the court to stop the sale.
NBK has won the first round of the case after it obtained orders stopping the auction but failed to remove KCB as the administrator of the property.
Twahir Sheikh Said who was popularly known by his initials TSS, passed away in January, leaving behind a a shaky financial empire that ran across several countries.
His children are fighting in court for control of his properties and Zipo.co.ke has also learnt that a relative and his former employees have been arraigned for forging documents and his signature to secure huge loans from banks.
In a separate transaction, Juja Cofee Exporters associated with the late businessman, has disputed a Sh4 billion debt demanded by NBK.
According to court documents, Juja Coffee Exporters Limited admitted in May that it owes money to the bank from a past loan but not the amount being sought. The firm doesn’t understand how the loan ballooned to Sh4 billion even as NBK asked the High Court for orders to auction it to recover its cash.
In the latest battle NBK and KCB are battling to control TSS Grain Miller to enable them recover loans taken between 1998 and 2014. NBK advanced the loan in 2014 while KCB advanced two loans in 1998 and 2007.