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City hall under Auction after High Court rulin

Post by : Ann Njambuya

KCB CEO Joshua oigara, the bank made 15.3 billion in profit in the first six months. it is also acquiring two banks in rwanda and tanzania

The Nairobi City county Government may lose its assets after a high court ruling. The high court ruling was issued by justice Chacha Mwita who gave the nod for KCB bank to auction city hall assets. This ruling was delivered after a fierce battle between the county and the bank.

KCB bank is demanding over 4.3 billion shillings from City Hall. there has been bad blood between both parties with the bank accusing the County Government of negligence and dishonesty. According to documents obtained by http://www.iconnews.co.ke both parties had agreed to settle the matter out of court. they both agreed on an arbitrator.

The arbitrator agreed upon was Phillip Bliss Aliker. Mr Aliker had the case ,evaluated the evidence and facts before him. He sided with the bank indicating that the City Government indeed owed the bank in excess of 4 billion shillings. He later awarded the bank over 9 million shillings as cost incurred during the process.

The city government was however not satisfied with this result and went to court to quash the arbitrator’s decision. In response to the petition served in court the bank through its lawyers indicated that the City Government was unwilling to pay the loan. The bank sought permission to attach and auction the city Government assets.

Low Revenue Collection

County governments including Nairobi have grappling with low revenues. The city government has not been able to achieve its revenue collection quotas since the inception of devolution.

KCB BANK MAKES 15.3 BILLION PROFIT IN 6 MONTHS

KCB CEO Joshua Oigara, KCB bank has received the nod to auction City Hall assets. the city Government has defaulted on loan payments.

This trend has made the city Government dependant on the national government. During a recent press conference by the council of governors. The Governors decried fund disbursement delays from the National government.

If the bank auctions the city Government assets this will set a precedent. That a county may lose its assets if i doesn’t repay its loans or dues.

 

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