Bank allowed to pursue debtor for deficit from loan collateral auction

The High Court has dismissed a borrower’s appeal to block Mayfair Bank from demanding payment of a Sh9.8 million disputed loan that was allegedly settled through the sale of securities valued at Sh27 million, affirming the lender’s right to recover outstanding debts even after auctioning collateral.

In a judgment delivered by Justice Linus Kassan, the court ruled that N.T. Express Laundromat Ltd and its director, Mourine Wanjiku, failed to prove allegations of misrepresentation or procedural irregularities in a 2020 consent agreement that bound them to repay the debt.

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