High Court Halts Wiper Party Asset Auction Over Disputed Sh698,000 Debt

The High Court in Nairobi has intervened to stop the planned auction of assets belonging to Kalonzo Musyoka's Wiper Democratic Movement. The decision comes in response to a disputed debt of Sh698,000, which was claimed by Mohamed Adan, a former Nairobi county ward representative aspirant, as legal fees owed by the party. The court's ruling, delivered by Justice Chacha Mwita, has quashed the warrants of attachment and sale, declaring the attempted auction irregular and unlawful.

The dispute traces back to a legal battle over the Wiper Party's nomination process for the Kwa Njenga ward representative seat in the 2022 elections. The case initially involved Mohamed Adan and Marcos Kithuku, with the Wiper Party named as an interested party. The matter began at the Political Parties Disputes Tribunal before escalating to the High Court. In June 2022, the court's deputy registrar ordered Kithuku, the appellant, to pay the costs of the proceedings. However, Adan later instructed Betabase Auctioneers to pursue the recovery of Sh698,816 in legal fees by targeting the Wiper Party's assets, despite the party not being held liable for the costs.

Justice Mwita, in his ruling, emphasized that there was no court order directing the Wiper Party to pay the disputed costs. He noted that the bill of costs and the certificate of taxation were issued against Kithuku, not the Wiper Party, which was merely an interested party in the appeal. The judge stated that the warrants of attachment and sale issued against the party's property lacked legal grounding, as the judgment did not condemn Wiper to cover the costs. This procedural error prompted the court to quash the auction plans, protecting the party's assets from being seized.

The Wiper Party, through its secretary-general Shakila Abdalla, strongly contested the auction attempt. Abdalla argued that the move was based on an error and was unprocedural, illegal, and unlawful. She highlighted that the party was surprised to receive notices from Betabase Auctioneers, as no liability had been apportioned to Wiper in the legal proceedings. Abdalla further clarified that the deputy registrar’s decision on September 26, 2023, which allowed the bill of costs, was directed solely at Kithuku, reinforcing the party's position that it was wrongly targeted.

In response, Mohamed Adan defended his actions, asserting that he was entitled to recover the costs from both Kithuku and the Wiper Party. He argued that the party had actively participated in the legal proceedings, which he claimed had caused him unnecessary expenses. Adan maintained that the warrants of attachment were lawfully issued and denied any errors in targeting the Wiper Party. However, the court rejected his arguments, siding with the Wiper Party's application filed in August 2024 to revoke the auction.

This ruling marks a significant victory for the Wiper Party, safeguarding its assets and reinforcing the importance of legal precision in executing court orders. The decision also underscores the judiciary's role in protecting parties from irregular enforcement actions. For now, the Wiper Party can continue its operations without the threat of asset seizure, while the case serves as a reminder of the complexities surrounding political party disputes and legal fee recoveries in Kenya’s judicial system.