The recovery case, filed before the Commercial and Tax Division of the High Court, was lodged by Credit Bank PLC against Smith & Gold Productions Limited, directors Moses Kuria and Aloise Kinyanjui Kuria, together with Emerging Capital Holdings Limited.

📻 Breaking It Down

NAIROBI, Kenya May 22 – Former Cabinet Secretary Moses Kuria and companies associated with him are facing a commercial lawsuit over an alleged unpaid debt of more than Ksh72 million arising from financing linked to projects at Bomet University College.

The recovery case, filed before the Commercial and Tax Division of the High Court, was lodged by Credit Bank PLC against Smith & Gold Productions Limited, directors Moses Kuria and Aloise Kinyanjui Kuria, together with Emerging Capital Holdings Limited.

According to the court filings, the dispute dates back to 2019 when the bank allegedly issued financial facilities to Smith & Gold Productions for certificate discounting transactions tied to university-related projects.

📌 What You Need to Know

The lender states that the first loan facility worth Ksh10 million was advanced in September 2019 at an interest rate of 13 percent annually, with repayment expected within 120 days.

Credit Bank says the facility was secured through personal guarantees from the directors, a corporate guarantee, and a commitment from Bomet University College to process payments through the bank.

After the first facility was reportedly settled, the bank says it approved a second Ksh20 million facility in December 2019 for similar transactions.

However, the lender claims the second loan later became non-performing and was eventually restructured in December 2022 into a Ksh40.9 million term loan to be repaid over a five-year period through monthly instalments of Ksh932,486.

Court documents indicate that the restructuring arrangement included renewed guarantees from the directors and the corporate guarantor, alongside a proposed Ksh5 million bullet payment expected from proceeds linked to the Karatu Stadium construction project.

The bank alleges that despite several demands and negotiations, the defendants failed to regularize the account, leading to accumulation of both contractual and penalty interest.

📰 Source: Capital FM Kenya