Barclays Bank of Kenya is seeking to auction a piece of land owned by one of its borrowers who has been unable to repay a Sh. 330 million advanced in 2001.
Since 2006, Barclays has been seeking to recover the loan, and last year issued sale notices to Mafuta Products and appointed Garam Investments Auctioneers to begin the auction.
The borrower, Mafuta Products, has however, obtained a temporary court order barring Barclays from selling the land until its suit has been determined. Mafuta Products claims in court papers that Barclays reneged on an out-of-court deal that allowed it to source for a buyer when the lender advertised the property for sale.
But Barclays says in a response to the suit that Mafuta has since 2006 filed several suits, and is attempting to use the judicial process to delay recovery of the Sh330 million loan.
The lender adds that Mafuta Products has failed to honour other repayment plans that were adjusted over the years to allow it finish the loan. Mafuta, however, says it had secured a buyer in 2014, who paid a Sh46 million deposit that was given to Barclays.