The High Court has restricted billionaire businessman David Langat from selling or transferring three parcels of land in Nandi, Kericho, and Eldoret over a debt of Sh87 million, piling woes for the trader who has, in recent years, had run-ins with some creditors over claims of unsettled loans.
The court blocked the tycoon, popularly known as DL, and his spouse from also gifting the parcels of land in Cheptalal (Kericho County), Kiplombe (Eldoret), and Kaptel in Nandi County pending further orders of the court.
Restrictions were placed following an application by Synergy Industrial Credit Ltd, which accuses the tycoon of failing to pay the debt, arising from loans granted to his company, DL Koisagat Tea Estate Ltd in 2016.
‘It is hereby ordered that you, the said judgment debtors, be, and you are hereby, prohibited and restrained, until the further order of this court, from transferring or charging the properties,’ the court order stated.
Documents filed in court showed that the financial provider advanced the tycoon loans on three different occasions, amounting to Sh67.1 million in April 2016.
The loans were for the purchase of nine heavy commercial motor vehicles and were to be repaid in monthly installments for a period of 48 months, ending in May 2020.
The court was further told that Mr Langat and his spouse signed guarantees to discharge all obligations and ensure the prompt payment of the loans.
The creditor moved to court in 2024, accusing the tycoon and his firm of failing to remit the monthly installments as per the hire purchase agreements and failing to honour payment promises.
The financial provider says in a meeting convened on August 26, 2021, at the behest of the debtors to discuss the payment modalities of the outstanding amount, which stood at Sh24 million as at July 2021, the tycoon acknowledged the debt and promised to settle Sh14.1 million of the outstanding amount before October 2021.
And despite the promises, the debt kept rising. In July 2023, the tycoon allegedly committed to pay Sh18 million within two months from the date of the letter on the grounds that he was about to get funds from other sources.
And after moving to court, the creditor successfully requested a judgment to be entered against the tycoon and his firm. This was after failing to defend the case, despite being served with the court documents.
The tycoon owns a tea estate in Nandi County and has business interests in Tanzania.
‘The statutory limit has since lapsed, and the Defendants have not entered an appearance. Interlocutory Judgment is hereby entered against the Defendants,’ the court said in a decision in August 2024.