This archive report was first published on 30 October 2019.
Published on October 30, 2019, a 70-year-old widow, Alice Wanjiru, is embroiled in a seven-year battle to save her Sh150 million property in Huruma, Nairobi.
Wanjiru claims that Faulu Microfinance Bank Ltd, the bank that provided her with a Sh65 million loan, engaged in a well-calculated scheme to defraud her of her property.
She alleges that the bank failed to disclose her monthly financial statements, refused to account for money collected from her premise, and sold the property at a throwaway price.
Wanjiru bought the property in 1991 from Jason Mwangi for Sh16 million. At the time, the property was a three-storey building. She later developed it into a seven-storey building.
She opened an account with Faulu Microfinance Bank Limited to acquire loans to finance her construction projects. Between March 2013 and May 2015, she applied for various loans amounting to Sh65 million to finance working capital and construction of the seven-storey building.
Under the loan terms, the bank was to collect all monthly rent from tenants as part of repayment, and she would top up the remaining balance from her other businesses.
However, problems started when a manager handling her account was transferred to another branch, and her efforts to have her account transferred to the manager's new station were turned down.
Wanjiru continued to repay the loan until January 2017 when Antique Auctioneers served her with a default notice and gave her 45 days redemption period. She asked the bank to give her statements to show how it was collecting the rental income and loan repayment, but they declined.
She claimed that in March 2017, an auction advert was circulated by Antique Auctions under instructions from the bank to allegedly recover Sh73 million when the statements indicated she only had an outstanding loan of Sh7 million.
Antique Auctions went ahead to sell the property to Oksama Investment Supplies Limited, which is now laying claim to the property.
Alarmed by the turn of events, Wanjiru reported to the Banking Fraud Investigation Department, who, after investigations, arrested Amos Mwugweru, Peter Onsongo, Robert Waweru, Paul Mwangi, Esther Muthoni, Tom Jaseme, Oksama Investment Supplies Ltd, and the auctioneers.
They faced charges of conspiracy to defraud Wanjiru of her property valued at Sh150 million, stealing, and forging her signature in the loan application forms. The case is pending determination at the chief magistrate's court.
The bank denied defrauding Wanjiru, saying that all her monthly statements are available and can be verified on her loan balance.
The bank maintained that it was within its right to auction the property to recover the loan and that it gave her enough time but she refused to comply.
Oksama Investment Supplies Ltd also filed a counter-suit to evict Wanjiru from the premises, claiming it legally acquired it through sale by public auction.
