Ad firm seeks to stop Imperial Bank from Sh29m loan CRB list

A closed Imperial Bank branch in Likoni, Mombasa on October 14, 2015, after it was placed under receivership.

Photo credit: Kevin Odit | Nation Media Group

What you need to know:

  • Adsite Ltd wants Imperial Bank Ltd (in receivership) barred from referring it to the credit reference bureau.

  • The firm says the bank is holding onto money in its accounts while alleging it is owed.

An outdoor advertising company has sued Imperial Bank Ltd (in receivership) seeking to have it restrained from referring it to the Credit Reference Bureau on the basis of a Sh29.2 million loan advanced to it.

Adsite Ltd also wants Imperial Bank restrained from charging interest and penalties on the loan accounts and also stopped from selling or auctioning a parcel of land and a motor vehicle which are part of securities for the loans.

The ad firm that seeks the orders pending hearing and determination of its case said in or about 2014 and 2015, the bank gave it a term loan of Sh27.5 million and another Sh1.7 million overdraft.

Through lawyer Willis Oluga, the company in its application at the High Court in Mombasa argues that together with its directors, they had personal deposits at the bank amounting to more than Sh30 million.

Adsite says: “The credit balances in the accounts were sufficient to clear the loan balances as at December 16, 2015.”

It says the bank continues to hold onto the money while alleging that it was in loan arrears.

Hearing is on October 14.