In a Ksh18 billion dispute with the Kenya Broadcasting Corporation (KBC), a city lawyer seeks to be compensated more than Ksh800 million for legal services provided. His dismissal by (KBC)staff retirement scheme members was unsuccessful.
The trustees of the scheme wanted to replace Morara Omoke’s firm with Gichamba & Company Advocates after terminating his employment.
The attempts were halted by Justice Maureen Odero, who also let the deputy registrar analyse and decide on Mr Omoke’s legal fees.
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The court rejected the pensioners’ plans to fire the attorney, stating that such actions were unlawful and unprocedural.
The judge ordered that the change of advocates will take place when the bill of costs raised by Mr Omoke, totalling Ksh820,242,212, is validated.
The board objected to the bill since the amount was higher than expected based on the terms of engagement and directions issued when the lawyer began working for it.
In a case filed in 2018 to recover unremitted pension deductions and interest from the State Corporation, the attorney represented the KBC pension system in court.
The legal battle lasted four years, and on April 27, 2022, Justice Maureen Onyango issued a ruling awarding the plan a 36 percent annual interest rate on the Sh18.4 billion in unremitted funds.
Court Orders
According to calculations submitted in court by attorney Omoke, the pensioners’ unpaid claim is worth Ksh18,421,704,159.
Through interim court rulings, the scheme obtained Ksh230 million from the corporation during the court procedures.
Mr Omoke estimated the legal fees he seeks to be reimbursed using the two amounts and the costs of the lawsuit that were granted to the scheme.
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The conflict between the lawyer and the scheme finally resulted from the plan’s board’s attempt to lower the claim’s amount from Ksh18,421,704,159 to Ksh6,369,152,342 without consulting the beneficiaries or scheme members.
“The computations as at the date of the judgment amount to Ksh18,421,704,159 but the trustees of the KBC staff retirement benefits scheme are suggesting a sum of Ksh6,369,152,342 which is a reduction of approximately 65.4 per cent,” Mr Omoke told the court.
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