Kisumu trader loses vehicle to lending firm over Sh90,000 loan

A businessman has gone to court seeking to recover his Sh1.2 million van allegedly sold by a money lender after he reportedly failed to repay a Sh90,000 loan.

Daniel Kalungu borrowed Sh90,000 from the Chap Chap group of lenders and was expected to repay it within one month at an interest rate of 30 per cent.

He said he urgently needed the money to pay his daughter's fees in order to keep her in school.

He was told to provide collateral and a loan processing fee of Sh7,000 to enable him to get the cash within 24 hours.

Desperate for the money, Mr Kalungu complied with the conditions.

He also handed over the log book of his vehicle as security.

However, he was unable to repay the loan within the agreed timelines.

Too quick

His lawyer, Nyamweya Mogusu, said the lender was too quick to attach the vehicle and sold it to recover their money.

In his submission before Senior Principal Magistrate Julius Ngarngar, Mr Mogusu claimed that an earlier valuation of the vehicle by Regend Valuers put the price at Sh760,000.

He said if the lenders had sold the car at a bare minimum of Sh760,000, they should take their Sh90,000 and give his client the balance.

The court gave defence lawyers seven days to respond to the suit before it is heard and determined.

The lenders also filed a counter-claim, saying the businessman had driven his vehicle into their yard and asked them to hold it or sell it to recover their money on expiry of the repayment deadline.