Equity Bank Kenya Limited, has drawn international attention after a group of aggrieved customers escalated complaints over alleged illegal property auctions to global financial watchdogs, drawing focus to how distressed asset recovery is conducted within the country’s banking sector.
The customers, branding themselves as Equity Bank Victims, have formally written to global institutions such as the International Finance Corporation, Bank for International Settlements, Financial Stability Board, Financial Action Task Force and the Basel Committee on Banking Supervision, seeking intervention and a thorough examination into what they term calculated illegal auctions aimed at benefiting the bank, while leaving borrowers exposed to loss of homes, businesses, and long-held assets.
They accuse the bank of engaging in “widespread and illegal auctioning of properties,” pointing to repeated violations of borrowers’ rights and due process, and claim that the auction process has, in several instances, been carried out without adherence to legal safeguards meant to protect chargees under Kenyan law.
In their detailed letter, the complainants outline a pattern of what they term abuse of the bank’s statutory power of sale, arguing that the legal authority granted to lenders has been applied in a manner that deprives borrowers of fair opportunity to respond or recover.
Among the key accusations are failure to issue proper statutory notices as required under Kenya’s Land laws, sale of properties at undervalued prices that do not reflect prevailing market conditions, and disregard of court orders that were intended to pause or review contested recoveries.
They further state that some auctions were conducted without meaningful engagement with borrowers, including refusal to restructure loans where repayment proposals had been presented, and failure to provide accurate statements of account prior to sale, leaving borrowers unable to verify outstanding obligations.
“Families, businesses, and communities have suffered immense financial loss, emotional distress, and a deep sense of injustice,” the petition reads in part, describing outcomes that they say have disrupted livelihoods and long-standing investments.
The group also makes serious claims of intimidation and harassment, citing instances of forced evictions carried out during recovery exercises and coercive tactics by auctioneers acting on behalf of the lender, which they say intensified pressure on affected households and business owners.
Unlike previous isolated complaints handled within Kenya’s courts, the latest move signals a shift toward internationalizing the dispute, with petitioners seeking external attention beyond domestic legal channels.
The petitions are being filed online at www.equitypetitions.com as part of a coordinated campaign by affected borrowers.
The petitioners aim to trigger review of the bank’s actions within the wider framework of international banking standards and consumer protection mechanisms, arguing that cross-border financial governance structures also bear relevance where global financial institutions and standards are involved.
Some of their demands include immediate and independent investigations into all alleged illegal auctions, suspension of ongoing auctions where due process is in question, and full transparency coupled with accountability on past sales, including disclosure of valuation reports and sale records.
They are also calling for compensation and possible restitution for affected victims as well as immediate regulatory reforms to tighten oversight of distressed asset sales, particularly in relation to notification procedures, valuation standards, and enforcement of court orders.
Kenyan law, particularly the Land Act, 2012, sets clear procedures that lenders must follow before exercising their power of sale, including issuance of statutory notices, valuation of charged property, and adherence to timelines meant to protect borrower rights before any disposal.
If proven, the claims could expose the bank to legal liability and potentially trigger regulatory action locally and beyond, particularly where courts determine that statutory requirements were not met during the auction process.
The case could also set a precedent for how borrower rights are enforced in Kenya’s banking sector, especially in relation to the balance between credit recovery by lenders and protection of property rights for borrowers under existing legal frameworks.
