MP Samuel Arama loses bid to stop bank from selling land over Sh3m loan

NAIROBI, KENYA: Nakuru Town West Member of Parliament Samuel Arama has lost bid to stop Family Bank from disposing a 0.15-hectare piece of land in order to recover sh3million loan.

The land registered under the name of his wife, Florence Mandere Masita, had been used as collateral to secure the loan.

Environment and Lands Court Judge Justice Dalmas Ohungo in a ruling delivered in court on Thursday noted that the application filed by Arama in June 2016 had not established sufficient grounds with an impression to succeed and had it dismissed.

Justice Ohungo dismissed claims by the legislator that the bank failed to issue a requisite statutory notice to his wife who is the registered owner of the collateral adding that she was duly served and declined to restrain the bank from disposing of the suit land despite the differences in amounts owed to the bank.

"The mortgagee (Family Bank) will not be reinstated from exercising its power of sale because the amount is in dispute and or because the mortgagor (Arama) objected to the manner in which the sale is being arranged," read Justice Ohungo's ruling in part.

The judge, however, noted that the bank could be reinstated from selling the land if the MP pays the amount the bank claimed to be due to him.