This archive report was first published on 3 July 2019.
On July 3, 2019, East Africa Transport Logistics Ltd, a transport and logistics company based in Mombasa, filed a lawsuit against Bank of Africa (BoA) to stop the auction of its land over a Sh58.8 million loan.
The company is seeking a declaration that the purported auction of the prime parcel located in Shanzu is null and void, citing grave illegalities in the process.
According to the company's suit papers, the loan was used to purchase five trucks from the UK, but only two were delivered. The remaining funds were invested in the business as working capital.
However, the company's business was severely affected by a civil war in South Sudan in 2015, leading to huge losses and making it difficult to repay loan instalments to the bank.
Bank of Africa, through Mr Titus Ikarot, responded by stating that the loan was governed by terms and conditions contained in the loan documents. He noted that the loan continues to accrue and currently stands at Sh76.1 million.
