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KCB Bank sued for selling ‘non-existent land’

17 October 2013, 11:02 Joseph Njung'eh

Nyeri - A Nyeri based lawyer, Muthui Kimani, has told the Lands Court that Kenya Commercial Bank (KCB) sold a ‘non-existent land’ to his clients.

Muthui said his clients, a family, have sued the bank for selling them a piece of land in Endarasha, Kieni sub-County, with forged documents and later declined to refund them.

Jerioth Nyaguthii Ng’ang’a and others are seeking orders to compel the bank to refund them after it was discovered that the bank sold them land without genuine certificates of ownership.

Through their lawyer, the family told the court that they purchased the parcel of land in 2010 through auction that was conducted in Nyeri town.

The auction was highly advertised in the media to attract many bidders and maximize chances of getting a buyer, according to Muthui.

KCB had acquired the land from Joseph Ndumia, who was also not the genuine owner since he had forged ownership documents to be able to acquire a KES 400 000 loan from the bank.

He later failed to repay the debt and hence the bank auctioned the piece of land to recover the money owed.

However, after the plaintiffs in the matter (Nyaguthii and others) went to see the parcel, they found it had already been occupied by a stranger and therefore moved to court seeking justice. They had bought the land at a cost KES 630 000.

The said documents of ownership were cancelled by High Court on January 29th 2009 and the land given back to the original owner, Karuru Munyororo. However, four months prior to cancellation, KCB had already auctioned it.

“The bank has no good and genuine certificates of ownership to show,” said the lawyer.

He stated that the plaintiffs have been pursuing the bank since 2010 requesting for a refund but to no avail.

Muthui said a land registrar also appeared in court and confirmed that the documents with the bank claiming ownership of the land are not genuine, adding that the bank did not file any defence during case proceedings.

The case was fixed to be resolved on November 4, where the court will determine which direction the matter should take.

However, the person who forged the documents to claim ownership and in turn obtain a loan from the bank has gone unprosecuted, according to the lawyer.

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