Home BUSINESS NEWS Kenyan Banks, Saccos Receive Nod to Blacklist Guarantors for Defaulted Loans

Kenyan Banks, Saccos Receive Nod to Blacklist Guarantors for Defaulted Loans

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Kenyan Banks, Saccos Receive Nod to Blacklist Guarantors for Defaulted Loans

The High Court has given a nod to banks, Saccos and other lenders to blacklist guarantors with Credit Reference Bureaus (CRB) in case of defaulted loans.

The court has allowed financial institutions to blacklist guarantors if principal borrowers fail to repay in a case where a Kenyan, Obadiah Gitonga, sued Cooperative Bank of Kenya (CBK) for blacklisting him over a bad loan where he was the guarantor.

“The referral of any information to the CRB is a requirement of the law and the defendant as a financial institution is entitled to do the same, and as a result of their negligence in notifying the plaintiff of the outstanding balance, the court has held that the plaintiff will not pay any interest on the said sum,” ruled Lady Justice Grace Nzioka.

Gitonga was seeking to have his name removed from CRB, a request the court declined, noting that Cooperative bank acted within the precincts of the law in blacklisting him.

“In the given circumstances, I find no basis for granting the orders sought,” ruled the court.

Justice Nzioka ruled that a guarantor assumes the responsibility of settling the debt where the principal debtor fails.

Gitonga accused Co-op Bank of maliciously listing him with the CRB and causing him huge losses after lenders rejected his applications for loan on grounds of his negative credit record.

 

2 COMMENTS

  1. Where is our 15 Trillion???…
    Where is our 15 Trillion???
    Distribution of looted wealth in the Moi family

    Gideon Moi
    1. Eagle Airlines
    2. Chemusian Ltd
    3. Fresh Produce Ltd
    4. Siginon Freight
    5. Car Track Kenya Ltd.
    6. First American Bank (which has since been sold to Kenyatta-family owned Commercial Bank of Africa)
    7. Equatorial Bank (which rebranded to Spire Bank in 2016)
    8. The Sasine Group of Farms
    9. Cable and Wireless.
    10. Kent Ship Maritime.
    11. Sielei Properties Ltd
    12. Giant Holdings Ltd
    13. Revak Ltd, Sudbury Ltd
    14.Sudbury Investments
    15. Giant Forex Bureau
    16. Westfield International Ltd
    17. Chesco Ltd
    18. Hampstead Enterprises
    19. Metipso Services Ltd
    20. Maternity Shop Ltd
    21. Maritime Logistics Ltd
    22. Homestead Enterprises

    Philip Moi
    23. Mugoya Construction
    24. Asian Roses
    25. First Force Security
    26. Equity Stock Brokers
    27. Safariland Club
    28. Taurino Enterprises
    29. Regent Management
    30. Giro Bank
    31. Paradise Holdings
    32. Gateway Properties
    33. Hahuru Investors
    34. Sheraton Holdings
    35. Concord Holdings
    36. Extra Kenya
    37. Tiger Farm Ltd
    38. Moi High
    39. Kabarak University
    40. Real estates in South African, London & California

    Majority of the companies are shell corporations holding Kenya’s looted wealth between 1978 – 2002.

    You can verify all of this looted wealth in the Kroll report. The Moi family needs to be prosecuted & all assets recovered.

    Courtesy of twitter.

  2. And Kenyans just got a Moi…
    And Kenyans just got a Moi day instead??? Him and his family should be dispossessed of all the wealth they looted since circa 1978.

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