Mwananchi Credit pursues kin of deceased in loan fight – Business Daily
Mwananchi Credit pursues kin of deceased in loan fight. PHOTO | POOL
The High Court has ordered a woman who guaranteed her brother, who has since died, a loan from Mwananchi Credit to deposit Sh126,000 as a condition for the release of her vehicle, which was seized by the lender.
Justice Alfred Mabeya directed Anne Karinge to deposit the money in an interest-earning account bearing the names of her advocates and of the lender.
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Mwananchi Credit Ltd moved to court after Ms Karinge obtained orders from the Small Claims court directing the lender to release the vehicle, which was seized in February, forthwith.
The financial institution was apprehensive that it might not recover the money since the principal debtor- Solomon Mwangi has passed on.
“It is true that if the vehicle is released to the respondent as ordered, then there is a real risk that the only guarantee of the payment of the debt owed to the appellant may be lost. That might lead to substantial loss. But the respondent is also entitled to the fruits of her judgment,” the judge said.
The lender told the court that Mr Mwangi borrowed Sh421,459 in October 2019 and Ms Karinge offered her vehicle as security.
He later took another loan of Sh200,000 in May last year and defaulted, forcing Mwananchi Credit to seize the vehicle.
But soon after taking the vehicle, the lender discovered that Mr Mwangi had passed on. The lender struck a deal with Ms Karinge who repaid Sh200,000.
She later filed a case before the Small Claims Court and the presiding magistrate directed the lender to release the vehicle without conditions.
The lender said the loan had ballooned to about Sh900,000 and doesn’t know how to recover it, once the vehicle is released.
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Ms Karinge opposed the case saying it was a ploy to prevent her from enjoying the fruits of successful litigation.
She said the lender had not demonstrated the substantial loss that it would suffer or how the appeal would be rendered useless if the vehicle is released.
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