Friday, December 6, 2024

Bank sues CS Hassan Joho over Sh. 54.5 million defaulted loan arrears

Bank sues CS Hassan Joho over Sh. 54.5 million defaulted loan arrears

The Cabinet Secretary for Mining Ali Hassan Joho has been sued by a local bank over loan arrears amounting to Sh. 54.5 millon.

CS Hassan Joho has been sued by SBM Bank which claims in the suit that the multi-million loan had been advanced to him for the acquisition of Tamarind Village property in Nyali, Mombasa. The property was to act as the guarantor for the loan.

SBM Bank says that Joho took a Sh. 40 million loan on or about January 3, 2014. He appliee and took the loan under the Islamic banking principles.

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Between 2014 and 2021, the CS made partial payments amounting to Sh. 20.25 million. Since then, the loan arrears have grown to total Sh. 54.5 million as at August 1, 2024.

Despite defaulting, the CS has refused to provide the bank with the original title deed for the property as had been agreed when the loan was applied for and approved.

The lender says that the cabinet secretary was supposed to provide the bank with the original title deed for the registration of the charge.

The SBM manager for the debt recovery department, Peter Chege, says in court filings that the loan accounts stand at Sh.54.5 million. He further says that the outstanding amounts continue to accrue default charges at a rate of 20 per cent.

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It is not clear why the minister has failed to repay the money despite declaring that he is a billionaire.

Hassan Joho: I pulled myself from D- in KCSE to 2 degrees, Sh. 2.3 billion wealth

In August 2024, CS Hassan Joho disclosed that he is worth Sh. 2.36 billion. Joho made the disclosure when he appeared to be vetted for the position of Cabinet Secretary for Mining, Blue Economy and Maritime Affairs by the National Assembly Committee on Appointments.

Joho attributed his wealth to properties and business shareholding within his family. “[My wealth consists of] largely developed and undeveloped property, which includes my homes in Mombasa, Vipingo, Malindi, and Nairobi. Shareholding in some property holdings, shareholding in family businesses, valuables and cash at bank,” he said.

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