The founder of Maximum Miracle Centre Bishop Pius Muiru (popularly known as Pastor Pius Muiru) is in court fighting to stop the possible auctioning of his properties.
The properties are valued at an estimated Sh960 million and were used to provide guarantee for a Sh260 million that the Pius Muiru applied for at Equity Bank, Tom Mboya Street Branch in 2010 and got. This loan was given at an interest rate of 14.5 percent per annum on reducing balance with a default penalty of 6 percent.
According to court documents, the properties include land and rental buildings that are located in Nairobi and Kiambu counties. The properties are co-owned by Muiru and his wife Lucy.
In his affidavit, Muiru says that the loan has been overcharged and that the outstanding balance should be Sh27.9 million. He claims to have paid Sh350.6 million.
“After the plaintiff paying a total of Sh350,640,968.07, there was a recalculation difference in the outstanding balance as at September 15, 2020, between the defendant’s debit balance of Sh150,829,061.80, and the Interest rates Centre Ltd (IRAC) debit balance of Sh27,963,260.50,” he has told the court.
“Accordingly, there was a total overcharge of Sh122,865,801.43 in favour of the 1st plaintiff, which ought to be offset against the plaintiff’s loan account to leave an outstanding balance of Sh27,965,260.50.”
The affidavit has been filed at the Milimani Commercial Court. Muiru has further revealed that the Sh216 million that he took was secured with properties L.R. No. 209/525/38, L.R. No. 209/525/40 and L.R. No. 13330/604.
At the same time, the loan was backed up by personal guarantees by his wife Lucy through a deed of assignment of rental income over properties L.R. No. 209/525/38, L.R. No. 209/525/39, and L.R. No. 209/529/40, and charge over all shares in the capital of Nairobi Theatres Limited and Corporate Guarantee from Nairobi Theatres Limited which is an enterprise owned by his family in Nairobi.
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On its part, Equity Bank has said that the loan taken by Pius Muiru was to be repaid in 84 monthly instalments. This places the amount of instalments at around Sh4,107,738 per month. However, Muiru defaulted on the loan from September 1, 2011 to September 20, 2016 leading to the accrued interest rates.
“…Coupled with the plaintiff’s [Muiru] default in servicing the loan, the penalty for default on interest at six percent above the applicable interest rate was applied on the plantiff’s loan account between the period of September 1, 2011 to September 20, 2016,” said Equity Bank in its replying affidavit.
However, the court has granted Muiru an injunction preventing Equity Bank from advertising the properties for auction. This injunction was issued by Justice M. Muigai, with the matter now set for hearing on July 8, 2026 before Lady Justice Njoki Mwangi.
