A Nyeri gubernatorial aspirant has moved to court to stop a bank from disposing off his property valued at Sh25 billion through a public auction.
Through lawyer Dennis Muriithi, Mr Githinji Kinyanjui wants Jamii Bora Bank Limited stopped from selling his properties by April 26 while accusing it of not following due procedure or compensating him.
“The bank is engaging in extraneous matters not otherwise provided in law in purporting to exercise its statutory power of sale and these includes a smear campaign targeting his personal affairs, which has nothing to do with contractual relations,” Mr Muriithi said.
The dispute between the aspirant and the bank emanated from a Sh369 million loan secured through his company — Cocorico Investments Limited — two years ago, which he used to purchase a parcel of land in Nyeri.
He had intended to subdivide and develop part of it before selling off the remaining parts so that the proceeds from the sale could be used to repay the loan.
He claimed to have presented his intention to the bank and they had reached an agreement in a letter dated March 10, 2015 before he was given the loan.
But the bank has accused him of defaulting to clear the debt yet he denies it saying that he has complied with all required terms.
Instead, he said, the bank has threatened to sell away his property and has even placed a caveat on the same advertised in local dailies on June 7, last year.
“Mr Githinji has at all times been aware that the monies for redeeming the loan would be from the sale of the subdivisions and houses, he was under an obligation not to undertake any action that would prejudice the redemption of the loan hence the bank has engaged in actions of bad faith meant to prejudice the agreement,” his lawyer said.
In the case documents he argued that the bank is acting maliciously since it has not issued the guarantor which is his firm, a 90-day notice or the auctioneers.
The bank has also threatened to appoint an official receiver of his assets and has also written to the Independent Electoral and Boundaries Commission (IEBC) as well as the Jubilee Party — which he intends to use its ticket to contest — that he cannot be trusted to hold public office since he lacks fiscal responsibility.
He wants the bank as well as auctioneers barred from interfering with his property pending the determination of his case.