MP Samuel Arama to lose home over unpaid mortgage

Nakuru Town West MP Samuel Arama is on the verge of losing his home over mortgage arrears.

The High Court dismissed the MP’s application to restrain Family Bank from auctioning his 0.15 ha land in Nakuru Town.

The MP, who is seeking re-election on a Jubilee Party ticket, got into trouble with the bank after defaulting on his mortgage repayment. He took the mortgage four years ago.

In a ruling delivered Thursday in Nakuru, Justice Dalmas Ohungo dismissed the suit with costs, giving the bank the go-ahead to continue auctioning the MP’s Sh9 million home.

ARREARS

“The bank will not be restrained from exercising its power of sale because the amount is in dispute or the debtor has begun a redemption action or because the debtor objects to the manner in which the sale is being arranged,” said Justice Ohungo.

The judge, however, said the bank would be restrained from auctioning the property if the MP pays the arrears.

The MP had on June 27 last year sued to have the bank restrained from selling the land, registered under his wife Florence Mandere Masita's name.

He told the court that the business he started using the loan failed and he had to close it down, making it difficult for him to repay the whole amount owed.

WIFE

But the MP explained that he had paid the principal amount as advanced along with interest.

He accused the bank of failing to issue a notice to his wife, who is the registered owner of the land.

In its response, the bank said Mr Arama’s application lacked merit.

The bank had hired Jogedah auctioneers to sell the land and intended to sell it for Sh9,150,000.