Blow to Moses Kuria as High Court allows his properties to be auctioned
Nairobi High Court on Monday, April 7, 2025, rejected Moses Kuria’s request to stop auctioning of his two prime properties valued at Ksh50 million for a defaulted loan.
Equity Bank Kenya Limited and Graham Investments Auctioneers sought to sell by way of public auction, the Kuria’s land, specifically, title: LR KIAMBA/ RUAKA/ 366 pending the hearing and determination of the application.
In his application to stop the auction that is supposed to take place on April 8, 2025, Kuria urged court to bar Equity Bank and Graham Auctioneers from selling his two apartments blocks in Ruaka and Juja in Kiambu County that sits in the said land.
Kuria told court that the Juja property was still under construction and did not have rental income adding that the bank’s action is premature since he was in the process of getting funds to settle the loan.
However, Judge Aleem Visram rejected the application by Kuria to stop the auction citing that it did not meet the threshold required.
“I find the applicant (Kuria) has not met the threshold for a grant of an injunction pending the hearing and determination of both the present application and the main suit,” ruled Justice Visram.
According to court documents, Kuria secured a loan of Ksh50, 000,000 from Equity bank back in December 2017 to construct rental blocks in Ruaka and Juja.
The documents further state that the properties were used as collateral for the loan, with legal charges registered against their titles.
“Based on the record before me, vide a letter of offer dated 15th March, 2018, the applicant took out a credit facility with the respondent in the sum of Ksh50, 000,000.The said letter of offer, which includes the various terms of the offer is attached at Exhibit EBKL2 of the respondent’s replying affidavit,” read part of the ruling.
The documents also stated that the agreement was for Kuria to pay Ksh402, 832, monthly for the loan in which upon him defaulting the bank sought to auction rental blocks in Ruaka and Juja to repay the loan.
According to the bank representative Kariuki King’ori, Kuria failed to repay the loan even after serving him with reminders to honour the agreement.
He also told the court that they met Kuria on January 24, 2025, and reached an agreement with him to pay Ksh850, 000 per month and he was to pay Ksh6, 400,000 by March 28, 2025, which he did not honour.
“By February 2025, no payment had been received, prompting further action,” read part of the affidavit.
“Plaintiff will pay a further Ksh5, 000,000 by April 15, 2025 and a final instalment of Ksh11, 535,629 by April 30, 2025 money which was to be used to settle the accrued arrears of Ksh21, 535, 629,” read part of the court papers.
