A businessman whose property has been advertised for auction over a Sh141 million bank loan has got a temporary reprieve after the sale was temporarily stopped by the High Court.
Mr Justice Eric Ogola suspended the sale of the land on which the matrimonial home of Mr William Kuria Josiah is built in Limuru, Kiambu County.
Mr Josiah who is also the chairman of The National Alliance (TNA) Party, Kiambu County Branch is asking the court to direct M/s Interest Rates Advisory Centre to audit the interest which Bank of Africa (Kenya) Limited is demanding from him alleging he has paid over Sh44 million in interest.
Lawyer Braimoh Mburu who filed the case under a certificate of urgency says in court papers that Mr Josiah was advanced a loan of Sh18 million in June 2010 but the bank is demanding an astronomical amount.
Mr Josiah supplies equipment to Kenya Power.
In his brief ruling Justice Ogola said: “It will be prejudicial to auction the home of Mr Josiah and other property when the bank has filed three different proceedings to recover Sh141,911,852/75 from the alleged loan defaulter.”
The judge certified as urgent the case filed by Mr Mburu and ordered the lawyer to file evidence before the case is heard on June 14.
Now the bank is demanding to be paid over Sh141.9 million by the businessman.
Mr Josiah and his company Techspa General Supplies has accused the bank of being unfair by advertising to sell through public auction his land in Limuru when there are three pending suits filed against him by the bank.
The bank is seeking to recover Sh141, 911,851/65 from Techspa’s accounts held in Kenya Commercial Bank, Quarantey Trust Bank and the Standard Chartered to cater for the unpaid loan. That move has been opposed.
Mr Josiah who is the managing director of Techspa General Supplies Limited says BoA granted his Company an overdraft facility of Sh18 million and an invoice discounting of Sh50 million.
The said loan was to attract an interest of 16 per cent per annum.
Mr Josiah said he offered his Limuru land as a guarantee to secure a loan of facility of Sh11 million.
“The loan was further secured by a fixed account in the name of Techspa of Sh10 million,” said Mr Josiah.
He adds that by the time he begun to experience financial problems he had paid Sh44, 511,379/57 in interest excluding penalties, commission and ledger fees.