HFC gets orders preserving land in Kampala University loan row


Wednesday March 01 2023


HFC Group CEO Robert Kibaara speaks at a past event. FILE PHOTO | SALATON NJAU | NMG

The Nairobi Court of Appeal has issued an injunction restraining, among other parties, Kampala International University from dealing with a piece of land for which the Housing Finance Company (HFC) has an interest.

Justices Hannah Okwengu, John Mativo and Weldon Korir held that failure to issue an injunction order to preserve the suit property might lead to the land being used in an adverse manner that will result in rendering the appeal inconsequential.

Read: HF Group reports first Q1 net profit in four years

“An injunction be and is hereby issued restraining the respondents, whether by themselves, their agents, from selling, disposing of, charging, or in any manner dealing with all that piece of land,” reads the court’s order.

“… known as Land Reference Number 7785/97 (Original Number 7785/10/92) and the purported subdivided plots thereto to wit; certificate of title IR No. 204894, Land Reference No. 7785/1489 (Original Number 7785/99/2) and certificate of title IR No. 204895, Land Reference No. 7785/1490 (Original Number 7785/99/3) pending the hearing and determination of the appeal.”

HFC brought the case against 12 parties including Kampala International University, Multi-Equipped Limited, Chief Land Registrar and Nairobi City County.

In 2011, the financial institution extended a Sh54 million loan to the university, which created a charge on the suit property in favour of the lender. The university defaulted on the repayment of the loan prompting HFC to exercise its statutory power of sale.

However, following an official search, HFC was informed that the university was not the listed proprietor of the property which was now claimed by Multi-Equipped.

Read: HF reports Sh61.5m profit as loans, advances income rises

Aggrieved, HFC filed a case against the respondents at the Environment and Land Court (ELC).

It also sought an injunction to prevent the respondents from dealing with the land during the proceeding of the case at the ELC.

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Beryl Onyango

Beryl Onyango is a CPA and economics degree holder who has dedicated her career to helping others navigate the complex world of finance. Beryl has spent the past 3 years working as a finance specialist in a fintech company and has 6 years of experience in finance, working with a diverse range of clients and industries. Beryl's expertise lies in budgeting, saving, investing, and retirement planning, but she also has a deep understanding of various other areas of finance. She is interested in financial technology and how it changes how we manage our finances. As a finance writer, Beryl has been sharing her insights and knowledge through her writing, covering various finance and personal finance topics. Her goal is to educate and empower individuals to take control of their finances and achieve their financial goals. In addition to her professional experience, Beryl is a lifelong learner, always seeking to expand her knowledge and stay up-to-date with the latest developments in finance. She is also a strong communicator, able to explain complex financial concepts in a clear and easy-to-understand manner. Beryl believes that financial literacy is the key to achieving financial success, and she is dedicated to helping others achieve their financial goals.