Mwananchi Credit has failed in its bid to lift a court order blocking the microlender from selling two lorries belonging to two traders, which were seized over a disputed loan.
High Court judge Kizito Magare upheld the injunction issued by a Milimani magistrate blocking the microlender from selling the two lorries -- a Mercedes truck and a Scania lorry, which were attached in March 2021.
The court was informed that Peter Kamau Githua and Elizabeth Wanjiku borrowed a loan of Sh2.5 million and charged the lorries as security. The traders said they had repaid Sh3 million but the lender was still demanding more money.
Justice Magare noted that the traders had pleaded and demonstrated that it was likely that the entire debt had been paid.
Secondly, the judge said, Mwananchi Credit is not a mortgagor as the chattel mortgage (the loan used to purchase the vehicles and which served as security of the loan) was not registered, making the attachment void and the amount claimed fictitious.
“There is also a contention that a sum of Sh9,254,767 is outstanding as per the records held by the appellant (Mwananchi). I am not a student in sorcery and magic, but I am unable to fathom the labyrinth or mathematical permutations and flagrant distortion of figures that caused a sum of Sh2,500,000 to become Sh9,254,767.24 despite payment of three million shillings,” the judge said.
The court was informed that the repossession of one of the lorries was made in a gangster-like move.
“If we are to let our microfinance fall into the same school as the shylocks, the court will be missing its duty,” said the judge.
The microlender moved to the High Court after the lower court blocked the sale arguing that there was a valid claim and that it had been registered.
But the traders maintained that they had paid all amounts due.
Ms Wanjiku said in an affidavit that one of the lorries was involved in an accident but they continued paying the loans.
In March 2021, the lender attached one of the vehicles and threw out the driver on the transit claiming a balance of Sh9.2 million.
Senior principal magistrate D.W. Mburu then granted the injunction in October 2021, pending the determination of the case.
