A couple fighting to block the sale of their properties in Nairobi and Mombasa over disputed loan terms has lodged a complaint with the Competition Authority of Kenya (CAK) against Stanbic Bank. They are accusing the lender of engaging in restrictive trade practices.
In the complaint, lodged on September 10, 2025, Nasser Abdulhamid Ahmed Baksh and Makarim Ahmed Omar want CAK to investigate the lender over claims of inflating loan charges, acts of harassment in order to procure conversion contracts, and alleged illegal interest charges.
The couple has already obtained a court order blocking the lender and Garam Auctioneers from selling their properties to recover a contested debt of Sh163 million.
High Court judge Aleem Visram granted a temporary injunction on condition that the couple deposits Sh40 million on account of the outstanding loan.
“The said deposit shall be made prior to the occurrence of the intended auction,” the judge said on September 8.
The couple allege that the bank intends to auction their three properties despite having repaid the loan by more than Sh463 million.
They rushed to court after the lender instructed Garam Investments Auctioneers to sell the properties, including their matrimonial home in Kitisuru, to recover the Sh163 million debt.
“The bank has been varying interest at whim without providing 30 days’ notice prior to any variation, as prescribed by the Land Act and or obtaining the CS Treasury written approval,” they state in their complaint.
The couple further said the bank’s blatant disregard for the law constitutes an abuse of dominance, whereby the lender abuses its economic power, which amounts to unconscionable business conduct.
In court documents, the couple claim that the bank illegally converted their joint home loans from Kenyan shillings to US dollars in 2014 and inserted strange, unknown amounts presented as disbursements in dollars, despite no such disbursements having been made.
They also claimed the bank charged illegal interest charges that were varied contrary to Section 44 of the Banking Act.
The couple has disputed the alleged balance, accusing the lender of making unexplained increases to the monthly repayments and interest rates, despite claims that they were making regular repayments.
“The said illegal conversions were procured in contravention of the Constitution of Kenya, Articles 35 and 46, and various applicable provisions of the Banking Act, the Consumer Protection Act, and the Central Bank of Kenya Prudential Guidelines,” Mr Baksh said.
The case will be heard on September 22.
Mr Baksh and his wife borrowed a total of Sh101.2 million between 2011 and 2014.
To secure the loans, they charged five properties, including two in Mombasa and others in Nairobi.
The couple said they operated two dollar and one Kenya shilling bank accounts through which they remitted the loan repayments from 2011 to May 2025.
They allege that the bank never provided them with bank or loan account statements until June this year, despite several requests.
They said that they had contacted financial consultants, who analysed the statements in question and concluded that the couple had paid the equivalent of KES 466 million, thereby surpassing the Duplum Rule threshold, given that they had borrowed Sh101.2 million.
The rule prevents interest on a non-performing loan from accumulating to exceed the original principal amount of the facility.
