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The High Court has temporarily issued a stay order stopping the implementation of a consent that directed a bank to transfer Sh74 million as legal fees to lawyers representing a businessman in a Sh400 million company dispute.

 Justice Alfred Mabeya granted the orders sought by a Rwandese investor Desire Muhinyuza through his lawyer Danstan Omari when the case came up for directions.

“Pending hearing and determination of the case, court issues an order on injunction temporarily staying the implementation of the consent orders issued on October 30, 2023 directing the manager of United Bank of Africa Westlands branch to transfer from Stayonline Limited US dollar account the sum of Sh35.5 million plus the accrued interests to Omwanza and Areba associates advocates and the sum of Sh38.8 million plus accrued interests to Ivy Ateko Ingati respectively,” the judge ordered.

The judge directed the respondents to file their responses within 14 days pending the mention of the case on February 16.

Last week, investor Desire Muhinyuza filed an application accusing businessman Kirimi Koome’s advocates of fraudulently obtaining a consent from court to be paid Sh74 million in legal fees.

In the application filed at Milimani court, Muhinyuza through Omari claimed that Koome’s lawyers Omwanza Nyamweya and Ateko Ingati fraudulently obtained the consent when they knew the ownership dispute was still pending in court.

Omari claims that the consent was stagemanaged by Koome’s two lawyers alongside one Raphael Olwako on behalf of Stayonline company.

He wants the court to review the consent, informing the court that Olwako is not the director of the company in question and it was all a scheme to unlawfully withdraw the money held by the company in the guise of legal fees.

According to court papers, Omwanza and Ateko failed to disclose to court that there were proceedings active in court on the ownership dispute between Desire and Koome.

“The impugned consent order was obtained without the lawyers making material disclosure to the court as to the status of Stayonline Ltd and that these proceedings were commenced in bad faith with ill intention of unlawfully utilizing funds amounting to Sh74,300,00 held in Stayonline’s bank accounts at UBA” Omari claims in court papers.

On December 27, the High Court declared that a Sh400 million disputed fintech firm belongs to a Rwandese investor.

The court said Desire Muhinyuza was the legit owner of Stay Online Limited (SOL).