Kenya's Most Authoritative Political Newspaper

Citizen Weekly

Sunday 14 December 2014


Attempts by the National Bank of Kenya to sell a prime piece of land in Ruiru to recover a Sh519 million loan owed by a church met a serious setback when court stopped the planned sale. The bank is seeking to sell the prime land valued at Sh1.4 billion after the church defaulted on a Sh519 million loan it took in 2011.
Last week, High Court judge Fred Ochieng said the order stopping the auction was aimed at protecting innocent buyers who had acquired plots on the 202-acre land owned by the Presbyterian Church of East Africa on condition that the church would offset the loan charged to it.
According to PCEA sources, PCEA, which promised buyers title deeds once they had completed paying for their parcels, claims to have made payments of Sh418 million with a balance of Sh158 million.
During the court hearing, PCEA assured the court that it would repay the debt by February next year by making monthly payments of Sh51 million beginning this month.
In his ruling, Justice Ochieng gave PCEA officials a condition that in case they do not pay up in time “the bank should go ahead and sell the land without considering buyers as they were not party to the agreement between it and the financial institution”.
PCEA maintains that NBK has reneged on the terms of the deal and has threatened to sell the property. All proceeds from the sale of sub plots have been paid to NBK and that the subdivision exercise and sale of the plots has not been completed and in the circumstances, PCEA has not defaulted on its obligations to NBK.

No comments:

Post a Comment