Loan default: Bishop Yego to lose Sh200 million Kileleshwa flats

 

Retired AIC Bishop Silas Yego has failed to stop the auction of his Sh200 million apartments in Kileleshwa after he defaulted on a bank loan.

Yego had filed an application in court on January 11 seeking to stop the auction after he defaulted on his loan from Transnational Bank.

The former clergyman had taken a Sh140 million loan from the bank using his land in Kileleshwa, but he failed to pay and the bank put it all up for auction last year.

The bank has told the court the outstanding figure is now Sh153 million and Yego is yet to pay.

Last year Yego also lost two attempts to stop the auction when both the High Court and Court of Appeal ruled against him.

This year he filed a new application seeking to stop the auction by Purple Royal Auctioneers.

In his ruling, Justice David Majanja has dismissed Yego's the application, saying Yego had not presented any new facts to enable the court to adjudicate the matter afresh.

“In other words, this application is res judicata (a decided matter). Further, as the Court of Appeal held, the plaintiff is indebted to the bank and nothing now stands in the way of the bank exercising its statutory power of sale,” the court ruled.

Judge Majanja said there was no basis for an injunction.

Yego had sought an injunction to enable him liquidate the debt by selling his property to a third party.

He also filed an affidavit of a comprehensive offer by Fredrick Fyle (Kenya) Ltd that he wanted to use to offset the loan but the bank considered and rejected the offer.

Justice Majanja said it was not clear what other offer is on the table for the bank to consider, thus, there is no basis for an injunction.

The court noted Yego said he made several efforts to liquidate the debt by disposing of his other properties and making proposals.

Yego accused the bank of treating him unfairly and clogging  his equity of redemption, contrary to the law.

“The bank has rejected them unfairly, unreasonably, maliciously and capriciously in a manner that is denying him the right to redeem the suit property,” Yego claimed.

The bishop said he had engaged the bank with a view to exploring various means of liquidating or restricting the debt.

According to court records, Yego complained the bank has been unwilling to accommodate him.

He claimed that he has found proposed purchasers for the suit property but the bank has rejected the proposals and proceeded to advertise the suit for sale by public auction.