[2008-07-02]  Bank opposes sale of Matiba’s property
Barclays Bank of Kenya is seeking a consolidation of two suits filed by politician Kenneth Matiba opposing the sale of his Hillcrest group of schools to recover Sh544 million loan.

The bank’s advocate John Ougo in the application says both suits challenge his client’s right to sell and transfer the group of schools charged to it as security of a loan.

The application states that the suits raise identical issues of fact and law and a consolidation will save judicial time and eliminate contradictory decisions on the same loan issue.

Milimani Commercial court judge Jessie Lesiit has fixed 24th July for the hearing of the application.

The debt allegedly arose from an initial loan of Sh59 million the bank advanced the veteran politician in the 1980’s.

Matiba’s advocate Gichuki Kingara had indicated to the court that besides the schools, another house belonging to his client located near State house, which was not part of the loan security was to be transferred to the buyers at an additional cost.

The bank initially demanded for Sh544 million but later reduced the amount to Sh360 million after placing the schools under its control.


Source: The Standard