Former National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA) chair and Naivasha MP John Mututho has temporarily saved his 8-bedroom Kawangware property from auction over debt.
Mututho sought the help of the court to stop the auction where the 8-bedroom property had been put on sale by Garam Auctioneers.
Senior Resident Magistrate Peter Muholi has suspended the auction until an application is heard and determined.
Court documents submitted by Mututho disputed the loan arrears as he claims he borrowed Sh9 million but the bank wants to recover Sh20 million.
The public auction had been scheduled for Tuesday, April 27, 2021.
“Parcel of land known as L.R. No. Dagoretti/Riruta/s.499 Riruta Satellite Nairobi registered in the name of John Michael Njenga Mututho,” the auction notice read in part.
The property also includes four other single storey rental blocks comprising 17 single rooms, three toilets and two bathrooms.
It is said that the property brings in Sh160,000 in rental income on a monthly basis.
The notice also indicated that the former legislator had defaulted on land rates amounting to Sh165,000.
“The outstanding land rates and penalties were Sh165,590. Piped water and mains electricity services are connected,” the notice continued.
Mututho joins a growing list of Kenyans losing their property as the harsh economic times persist.
Central Bank of Kenya (CBK) data shows that Kenyans defaulted bank loans worth Sh73 billion in the 10 months to December 2020.
As of March 2020, the total value of loans defaulted was Sh351.73 billion, but the amount increased to Sh423 billion or 14.1 percent of the total Sh3 trillion loan book.
The hike has been attributed to the effects of Covid-19 where at least 1.72 million workers lost jobs in three months to June when Kenya imposed a lockdown.