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Nakuru MP risks losing Sh9m home over mortgage arrears

samuel arama

Samuel Arama, the Nakuru Town West MP. He is on on the verge of losing his Sh9 million home over mortgage arrears. FILE PHOTO | NMG

Nakuru Town West MP Samuel Arama is on the verge of losing his Sh9 million home over mortgage arrears.

A Nakuru High Court dismissed the MP’s application to restrain Family Bank from auctioning his 0.15ha land in Nakuru Town.

The MP got himself in trouble with the bank after defaulting on his mortgage repayment. He took the mortgage four years ago.

In a ruling delivered on Thursday, Justice Dalmas Ohungo dismissed the suit with costs, giving the bank the go-ahead to continue auctioning the MP’s Sh9 million home.

“The bank will not be restrained from exercising its power of sale because the amount is in dispute or the debtor has begun a redemption action or because the debtor objects to the manner in which the sale is being arranged,” said Justice Ohungo.

The judge, however, directed that the bank would be restrained from auctioning the property if the MP paid the amount due.

“If the mortgagor pays the amount the bank claims to be due to it, the bank will be restrained from selling the land,” he said.

READ: MPs want banks to pursue debtors before guarantors

Wife's name

The MP moved to court under a notice of motion to have the bank restrained from selling the land, registered under his wife’s name Ms Florence Mandere Masita, on June 27, last year.

He told the court that the business he started using the loan failed and dwindled at last which made it difficult to re-service the whole amount.

The MP, however, explained that he had paid the principal amount as advanced together with interest.

He accused the bank of failing to issue a notice to his wife, who was the registered owner of the land.

In its response, the bank termed Mr Arama’s application frivolous, mischievous and lacking in merit.

The bank had hired Jogedah auctioneers to sell the land and intended to sell it at Sh 9,150,000.