Rwandan investor Desire Muhinyuza has triumphed in a protracted legal dispute over the ownership of Stay Online Limited (SOL), a lucrative online company valued at KES 400 million.
Justice Mabeya’s ruling, celebrated as historic, carries profound implications for Kenya’s business landscape. Legal experts foresee its dual role as a deterrent against corruption and a catalyst for rejuvenating investor confidence, which had waned due to fraudulent practices.
The verdict directs Koome to restore all SOL shares to Muhinyuza, officially reinstating him as the rightful owner. Furthermore, Koome is mandated to pay Muhinyuza interest on the KES 400.0 million at court rates until full restitution is achieved. An additional KES 14.0 million, previously diverted by Koome from Muhinyuza under the pretext of tax payment for personal use, is also included in the restitution.
The legal saga reached its apex when the Directorate of Criminal Investigations (DCI) froze millions of dollars linked to SOL following Muhinyuza’s fraud complaint against Koome.
Justice Alfred Mabeya, heading the Commercial Division of the High Court, asserted, “I find and hold that Mr. Muhinyuza is the beneficial owner of Stay On Line (SOL). Kirimi Koome committed fraud by not filling out the Form of Beneficial Ownership Property at the time of incorporation of the company.”
The ruling rested on Muhinyuza substantiating his claim as SOL’s rightful owner, debunking Koome’s alleged ownership. Justice Mabeya underscored Koome’s fraudulent actions, particularly his failure to file the Form of Beneficial Ownership during the company’s incorporation.
Expressing contentment with the court’s decision, Muhinyuza’s lawyer, Danstan Omari, emphasized its significance in restoring confidence among investors who had suffered due to fraudulent practices in Kenya. Muhinyuza himself expressed gratitude to the judiciary for salvaging his company and investment.
Justice Mabeya dismissed Koome’s counter-claim for ownership of SOL, highlighting that Muhinyuza had initiated and facilitated SOL’s registration, infusing capital from Rwanda to commence operations on April 14, 2023.
