A Rwandan investor has emerged victorious in a legal battle in Kenya to reclaim ownership of an online company valued at Rwf3.2 billion ($2.6 million), which he was defrauded of by a Kenyan trader. ALSO READ: DN International boss finally arrested in Kenya over real estate scam in Rwanda The contested company, Stay Online Limited (SOL), was started by the Rwandan investor, Desire Muhinyuza, who remotely facilitated its registration on April 14, 2023, by wiring $29,000 from Kigali for the company's commencement of operations. As his Kenyan counterpart, Kirimi Koome, assisted with the registration process in Nairobi, he did not disclose the beneficial owner of the company, leading to a contentious ownership dispute that reached the High Court of Nairobi. In a verdict issued on Wednesday, December 27, Justice Alfred Mabeya, head of the High Court's commercial division, rsaid: I find and hold that Muhinyuza is the beneficial owner of Stay On Line (SOL). Kirimi Koome committed fraud by not filling out the form of beneficial ownership at the time of incorporation of the company. ALSO READ: Rwandan athlete dies in Kenya following a love triangle fight Muhinyuza, in his testimony, emphasised his ownership of SOL, which operates in Rwanda, Uganda, Tanzania, Zambia, Estonia, and Canada, providing a platform for traders to sell their goods online. He informed the court that SOL Rwanda's board had intended for Koome to register the company in Kenya and subsequently receive shares. However, Koome registered the company as its sole proprietor. Justice Mabeya ordered Koome to reimburse approximately $100,000 (approximately Rwf 125,731,200) received from Muhinyuza for tax purposes, which Koome had pocketed without remitting any funds to the tax authorities. The judge noted that Muhinyuza had reported Koome's actions to the Registrar of Companies, whom he had appointed to register the company while he regularized his immigration status. Muhinyuza has since been granted a work permit. Koome's counterclaim to be declared the owner of SOL was dismissed by the judge, who further ordered him to pay interest on the frozen $2.6 million (more than Rwf3.2 billion) at the court rate until it is fully paid. Immediately after the decision was delivered, Muhinyuza through his lawyer Danstan Omari, said this High Court judgement has restored the confidence of investors who are defrauded (of) their property by Kenyans “who are hell-bent.” Justice Mabeya highlighted Koome's failure to comply with amended company laws, especially the requirement for full disclosure of beneficiaries when registering commercial entities. The judge asserted that commercial dispute resolutions should be expedited to prevent money from being unnecessarily detained in banks, urging the release of $2.6 million into the national economy to stimulate job opportunities.
