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Nakuru West MP Samuel Arama in land tussle with bank

REAL ESTATE
By Julius Chepkwony | June 14th 2017
By Julius Chepkwony | June 14th 2017
REAL ESTATE
Nakuru Town West MP Samuel Arama photo:courtesy

Nakuru Town West MP Samuel Arama is locked in a land tussle with a local bank over a Sh3 million loan obtained in 2013.

Mr Arama has been fighting to secure the land measuring 0.15ha from the hands of auctioneers directed by Family Bank Ltd to dispose of it in order to recover the loan. He used the land registered under his wife, Florence Mandere Masita, as collateral for the business loan.

The business, he said, did well at first but started dwindling due to alleged hard economic times and inflation, making it difficult for him to service the loan.

The bank, following the failure to repay the loan, instructed auctioneers to sell the land.

Arama moved to court under a certificate of urgency to have the bank restrained from disposing of his wife's land.

He claimed the bank through Jogedah Auctioneers Services failed to issue a requisite statutory notice to his wife who is the registered owner of the collateral.

The bank intended to sell the land at Sh9,150,000, an amount he said was far much below its current value, approximately Sh25 million.

The notice to sell the land according to him violated his right to redeem it. He further stated that he had repaid the whole principal amount as advanced together with interest, which in total amounted to Sh8,055,322.

"We have actually repaid the whole of the principal amount as advanced but the interest remains a thorny issue and has purportedly escalated the amount to Sh9,131,052.22 as of June 8, 2016," read part of Arama's statement.

He accused the bank of failing to disclose to him how they arrived at the figure since the bank had not issued him with any statement.

"The notification to sell the land is not only illegal but irregular and is issued in blatant disregard of the procedure, the law and against the rules of justice," stated Arama in his affidavit.

The bank in reply termed the application by Arama as frivolous, mischievous and lacking in merit.

 

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