Sam Ongeri in Sh25m row with National Bank
Prof Sam Ongeri arrives at County Hall in Nairobi on September 2, 2014. PHOTO | EVANS HABIL |
What you need to know:
- National Bank sued the ambassador over a loan advanced to him in 1993 to open a plastics manufacturing company in Nairobi.
- He insisted that he paid the loan in two years. But the bank said that Prof Ongeri was unable to pay monthly instalments of Sh2 million.
The newly appointed United Nations Habitat ambassador, Prof Sam Ongeri, on Monday accused National Bank of revising interest rates on a loan he had taken without his knowledge.
Prof Ongeri, who was giving evidence in a case in which the bank wants him to pay an outstanding amount of Sh25 million, said that the institution, in fact, owed him money.
The ambassador said he paid Sh34.9 million, exceeding his liability limit of Sh25 million by Sh9.9 million.
PLASTICS INDUSTRY
“The bank should have written to me before revising the rates. It is the bank’s obligation to inform me that they have deviated their charges,” he said.
Prof Ongeri told the court that he wrote a letter to the Central Bank of Kenya protesting the “high interest rates charged by the bank”.
National Bank sued the ambassador over a loan advanced to him in 1993 to open a plastics manufacturing company in Nairobi.
He insisted that he paid the loan in two years. But the bank said that Prof Ongeri was unable to pay monthly instalments of Sh2 million.
The case continues on October 21.
