MaurineTheuri
Member
Former NACADA Chair John Mututho has temporarily saved his 8-bedroom matrimonial home in Nairobi’s Kawangware area from being auctioned over a Ksh20 million debt.
The two-storey mansion located in Riruta Satellite had been held as security for a Ksh9 million Mututho obtained from a local bank.
After rushing to court to stop the sale, Senior Resident Magistrate Peter Muholi suspended the auction until an application is heard and determined.
The public auction had been scheduled for Tuesday, April 27 by Garam Investments Auctioneers.
In court documents, Mututho has disputed the loan arrears because he had borrowed Ksh9 million but the bank wanted to recover Ksh20 million.
Also attached for sale were 17 single house rental units. The property has an estimated monthly rental income of Ksh 160,000.
The statistics point to a struggling economy which is aggravated further by the impact of the Covid-19 pandemic on businesses and households.
Data from the Central Bank of Kenya (CBK) shows that 14.5 percent of all loans taken have defaulted.
This is not the first time Mututho has risked losing the property. In 2008 he was also hit with an auction notice from another bank.
In a ruling made by Justice Mohamed Warsame who was then a judge of the High Court, the bank sought to sell the house to recover a Ksh5 million loan borrowed by Mututho’s firm.
Mututho proposed to pay a sum of Ksh1 million immediately and a monthly installment of Ksh400,000 per month for one year but defaulted in the payments again
The two-storey mansion located in Riruta Satellite had been held as security for a Ksh9 million Mututho obtained from a local bank.
After rushing to court to stop the sale, Senior Resident Magistrate Peter Muholi suspended the auction until an application is heard and determined.
The public auction had been scheduled for Tuesday, April 27 by Garam Investments Auctioneers.
In court documents, Mututho has disputed the loan arrears because he had borrowed Ksh9 million but the bank wanted to recover Ksh20 million.
Also attached for sale were 17 single house rental units. The property has an estimated monthly rental income of Ksh 160,000.
The statistics point to a struggling economy which is aggravated further by the impact of the Covid-19 pandemic on businesses and households.
Data from the Central Bank of Kenya (CBK) shows that 14.5 percent of all loans taken have defaulted.
This is not the first time Mututho has risked losing the property. In 2008 he was also hit with an auction notice from another bank.
In a ruling made by Justice Mohamed Warsame who was then a judge of the High Court, the bank sought to sell the house to recover a Ksh5 million loan borrowed by Mututho’s firm.
Mututho proposed to pay a sum of Ksh1 million immediately and a monthly installment of Ksh400,000 per month for one year but defaulted in the payments again