Former Naivasha Mp Losses Land to Jamii Bora Bank for Auctioning to Settle Outstanding Sh 21.7 Million Debt

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A Former Naivasha  Mp has been dealt a blow after a high court gave Jamii bora bank a go ahead to auction his land for the recovery of Ksh 21.7 million debt.

The former Naivasha Mp, Mr. John Kihagi is said to have failed to settle the loan from Jamii Bora bank which was advanced to him through a microfinance institution known as Ridhika capital limited where he also served as one of the directors.

Mr. Kihagi moved to Naivasha law court after receiving statutory notices for the sale of his land via public auction or private treaty. 


According to the complainant, he only borrowed the bank  Sh2.3 million in 2014 and had settled the loan.

He went ahead to seek orders from the court for the release of his land title deed which he had used to secure the said loan.

Justice Richard Mwongo however declined to stop the auction after learning that the title deed was a third party charge to secure advances to Ridhika and not to Mr. Kihagi.

Further evidence in court showed that the land’s title was charged by Ridhika from time to time as security for further advances.

“This expanded the maximum principal amount of Sh2.3 million to include the entirety of the Secured Obligations subsequently granted, ” ruled the court.


One of the statutory notices dated January 24, 2019, indicated that the arrears in default amounted to Sh17,122,137.

The bank went ahead to give the complainant a 40 days notice to redeem the Charged Land and notified him that a sale by public auction of the Charged Land would commence after the said period.

The bank had also granted Mr. Kihagi liberty to apply to court relief as required under section 90 (1) e) of the land act in a notice copied to Ridhika Capital Limited, the complainant wife Leah Njeri, and Jamii Bora bank.

In the meantime, the bank increased the loan to Sh 21.7 million while the existing charge and other collateral acted as security.

“Mr. Kihagi cannot feign ignorance of the further financial facilities granted when he admitted having signed the letter of offer for advances up to Sh 21.7 million and also signed a similar guarantee for the similar amount,” concluded the judge.

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