FORMER UN OFFICIAL GRANTED REPRIEVE FROM AUCTIONEERS.

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High Court Judge Wilfrida Okwany

BY SAM ALFAN.

A former UN official has been granted reprieve in a Sh72 million bank loan default case.

High Court Judge Wilfrida Okwany granted orders stopping the auction of the house in Kiambu, pending determination of a case filed by Roseanne Nyambura.

“Having regard to the findings and observation that I have made in this ruling, I find that the instant application is merited and I therefore allow it,” ruled the judge.

She will however continue servicing the loan as the matter continues in court.

“The order of injunction will however remain in force only on condition that the applicant (Roseann Nyambura Maina) continues serving the loan agreement between her and Stanbic Bank Kenya Ltd expect for the period of nine months,” ruled the judge.

The judge directed that in case of any default by Nyambura Stambic Bank Garam Investments Auctioneers shall be at liberty to commence afresh and in accordance with the Land Act.

In her application, Nyambura had urged the court to issue a temporary injunction restraining Stanbic Bank, Liberty Insurance and Garam Investments Auctioneers from selling by a way of auction, transferring or interfering with her proprty in Kiambu.

In her court documents, she said she borrowed a loan of US $ 610,000 (about Sh72.2 million), which had a condition that she must take an insurance for domestic cover and mortgage protection. 

Nyambura said she later discovered that she had signed up for insurance with Liberty Life Assurance despite requesting an insurance with Sanlam Kenya.

The judge issued the order after she found that the balance of convenience tilts in favour of Nyambura who stands to suffer greater injustice if the sale is allowed to proceed before the clinical issues she raised over the existence of mortgage insurance policy, service of statutory notices and valuation of the suit were ironed out.

She said she made payments on the insurance amount through her monthly mortgage repayments.

The policy provided that in case she suffered from loss of income, the insurer would service the loan for nine months.

The former UN official said she was retrenched from UN African Mission in Darfur in June last year and expected the insurer to repay the loan facility as agreed. 

She revealed that there were several correspondence between her and the bank requesting confirmation as to whether the insurer would cover the repayment.

Nyambura claimed that the insurer requested for information relating her employment including formal letter of employment, information she says the bank ought to have sought before taking the insurance. 

According to her , she was served with a three months’ notice in October last year, despite seeking the clarifications. She challenged the notice arguing that it was not issued as required by law.

She said the bank later sought to auction the house for Sh71 million, which she says is extremely low compared to the current market price.

The bank claimed that the loan as at April stood at US $690,677 and Maina has refused to service it.

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