Bank stopped from selling 202 acres of church land
What you need to know:
- Mr Justice Fred Ochieng’, who issued the order, said he was protecting the innocent faithful, who bought the land, on condition that the church would offset the balance.
- The church had moved to court to stop the planned auction, arguing that it had repaid Sh418 million of the loan and was only left with a balance of Sh158 million.
A bank has been stopped from selling a 202-acre property belonging to the Presbyterian Church of East Africa, Ruiru Parish.
The National Bank of Kenya had threatened to auction the land to recover more than Sh500 million, the church borrowed from the lender.
The interest of 297 members of the church is at stake in the dispute, as the church had sold to them the property. Many had completed making payments.
The property, known as Ebenezer Ridge Estate, is located in Ruiru, Kiambu County. Each buyer was to pay Sh1.3 million.
The High Court Wednesday in Nairobi put on hold plans to auction the property to safeguard the interests of the church members.
The church had moved to court to stop the planned auction, arguing that it had repaid Sh418 million of the loan and was only left with a balance of Sh158 million.
INNOCENT FAITHFUL
Mr Justice Fred Ochieng’, who issued the order, said he was protecting the innocent faithful, who bought the land, on condition that the church would offset the balance.
The parish assured the court that it would repay the debt by February next year by making a monthly payment of Sh51 million from this month.
The judge said the bank could go ahead with the auction if the church reneged on the promise.
He advised members who had not fully paid for their parcels to do so to enable the church to preserve the land and its sanctity.
The church promised to issue title deeds to the buyers after they completed the payment.
The buyers had said they had not received the documents.
