NAIROBI, Kenya — Kasarani Member of Parliament Ronald Karauri has moved to the High Court seeking orders to preserve more than Sh71 million held in an escrow account, accusing a technology firm and a law firm of failing to refund a loan advanced to facilitate a financing transaction.
In court papers filed before the High Court, Karauri is seeking orders restraining Compugeen Africa Limited and Conrad Law Advocates LLP from accessing or dealing with USD 552,000 (approximately Sh71.4 million) held in a United States dollar escrow account at UBA Kenya’s Upper Hill branch pending the hearing and determination of the case.
The legislator is also asking the court to compel the respondents to transfer the funds to his Ecobank Kenya account within 14 days, arguing that the money became immediately refundable under the parties’ loan agreement.
According to the court documents, Karauri advanced the funds in March 2025 under an agreement requiring the money to be deposited into an escrow account as security to enable Compugeen Africa Limited to secure financing from a third party.
The agreement allegedly provided that the funds would be refunded within 10 days, together with compensation equivalent to 10 per cent of the loan amount, irrespective of whether the financing arrangement was successful.
Karauri contends that although the company later acknowledged the debt and sought an extension of the repayment deadline to April 28, 2025, it failed to honour the revised repayment schedule.
He argues that despite repeated demands, neither the principal amount nor the agreed compensation has been paid.
“Unless this application is urgently heard and granted ex parte in the first instance, the company and the law firm will remove and dissipate the funds or leave the jurisdiction of this court, thereby rendering this suit and any decree issued nugatory, and I will suffer substantial and irreparable loss,” Karauri states in his application.
The MP further claims that the escrow account is under the control of advocate Conrad Maloba and expresses concern that the funds could be withdrawn before the dispute is determined.
Karauri also argues that Compugeen Africa’s directors, whom he identifies in the court documents as Nigerian nationals, have no known attachable assets within Kenya, potentially complicating the enforcement of any judgment that may be issued in his favour.
“Compugeen Africa Ltd and Conrad Law Advocates LLP are merely refusing or neglecting to return the USD 552,000 contrary to Clause 5 of the loan agreement without any just cause,” the application states.
To support his case, Karauri has attached email correspondence and demand letters which he says demonstrate that Compugeen Africa acknowledged the debt and requested additional time to settle the amount.
He is now asking the High Court to preserve the funds pending the hearing and determination of the suit or, alternatively, order their immediate release to his Ecobank Kenya account.
