Court declines to block auction of Moses Kuria's properties over Sh50 million loan

Advisor Moses Kuria speaks as Deputy President Kithure Kindiki opened Kisumu West Huduma Centre at Ojola in Kisumu. [Michael Mute, Standard] President William Ruto's senior advisor Moses Kuria has suffered a setback after the High Court on Monday declined his request to halt the auction of two prime properties over a Sh50 million unpaid loan. Justice Aleem Visram rejected Kuria's urgent application to stop the sale of two apartment blocks in Ruaka and Juja, Kiambu County, scheduled for April 8, 2025 (today), pending the hearing of his petition. "I find the applicant (Kuria) has not met the threshold for a grant of an injunction pending the hearing and determination of both the present application and the main suit," Justice Visram ruled. Kuria secured a Sh50 million loan from Equity Bank in December 2017 to construct five-storey rental blocks in Ruaka and Juja. The court documents reveal that the properties were offered as collateral for the loan, with legal charges registered against their titles. However, Kuria defaulted on the loan and the bank decided to auction the properties to recover the outstanding debt. The loan agreement required monthly payments of Sh402,832, but Kuria failed to honour them. In documents presented to the court, Equity Bank explained that the loan, initially intended for construction, fell into arrears when Kuria failed to service the debt as agreed. "The plaintiff has not only failed to honour his payment commitments but has also neglected to follow through with his agreed repayment plan," said a representative of the bank, Kariuki King'ori. The bank further highlighted that despite multiple reminders, including a meeting with Kuria on January 24, 2025 at his office in Karen, the agreed sum of Sh850,000 per month was not paid. "By February 2025, no payment had been received, prompting further action," the affidavit reads. The court documents also revealed that Equity Bank had engaged in multiple discussions with Kuria, including a final meeting in late March 2025, where a new payment plan was agreed upon. The plan stipulated that Kuria would pay Sh6.4 million by March 28, 2025, followed by further payments in April and May 2025. "Plaintiff will pay a further Sh5 million by April 15, 2025 and a final instalment of Sh11,535,629 by April 30, 2025. These sums will be utilised towards settling the accrued arrears of Sh21,535,629," read the court papers. Subsequently, Kuria was expected to pay a sum of Sh 850,000 as monthly installments until payment in full. However, even with these new terms, the bank claims Kuria failed to meet his initial commitment, leading to the decision to instruct Garam Investment Ltd, an auctioneering firm, to proceed with the sale. "We gave Mr Kuria ample time and opportunity to settle the debt, but he failed to comply with the agreed-upon terms," said King'ori. "At no point did the plaintiff make any significant payments, even after committing to a payment schedule." In a final attempt to prevent the auction, Kuria sought an injunction, arguing that the bank's actions were premature and that he was in the process of securing funds to settle the debt. He further told the court that the Juja property was still under construction and therefore did not have any rental income. However, Judge Visram dismissed his application, ruling that Kuria had not demonstrated substantial progress in paying the debt. The judge noted that Kuria had not met the necessary conditions to warrant the court's intervention, particularly given his failure to honor previous payment agreements.

Court declines to block auction of Moses Kuria's properties over Sh50 million loan

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Court declines to block auction of Moses Kuria's properties over Sh50 million loan

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