A Kisumu-based trader has received a major reprieve in a KSh 110 million debt dispute with NCBA Bank, following a court intervention.
The businessman, who had been battling the bank over claims of defaulting on a multi-million loan, was granted temporary relief after the court halted debt recovery proceedings, pending a full hearing of the case.
Court Steps In
The trader had moved to court seeking protection from what he termed as unfair enforcement measures by the bank. In his plea, he argued that the debt recovery process initiated by NCBA was irregular and unlawful, citing discrepancies in loan repayment calculations and alleged breaches of contract terms.
After reviewing the case, the court issued an injunction, temporarily blocking NCBA from seizing assets or taking further action against the trader until the matter is fully determined.
Trader Seeks Loan Restructuring
Sources close to the case indicate that the trader has been seeking a loan restructuring deal with the bank to enable him to meet his obligations without losing his assets. However, negotiations between the two parties had reportedly stalled, prompting the trader to seek legal intervention.
NCBA’s Response
While NCBA Bank has yet to issue an official statement on the ruling, legal experts believe the case could set a precedent for future disputes between banks and borrowers, especially regarding loan restructuring and debt enforcement practices.
With the matter now before the court, all eyes will be on the proceedings as both parties present their arguments in the coming weeks.
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business