Former Cabinet Secretary Moses Kuria and a company linked to him are now at the center of a legal dispute after Credit Bank moved to court seeking to recover an alleged debt of Sh72 million.
According to documents filed in court, the dispute is connected to loans that were reportedly issued in 2019.
The lender claims that the original amount stood at about Sh59.7 million before it increased over time due to alleged defaults, interest, penalties and other accumulated liabilities.
Credit Bank is now seeking legal orders to compel repayment from both Kuria and the company associated with him.
The case is expected to attract attention because of Kuria’s profile in Kenyan politics and government, where he previously served in senior positions.
Court filings indicate that the bank believes the borrowers failed to meet agreed repayment terms, forcing the lender to seek legal intervention in an effort to recover the money.
The financial institution argues that despite the passage of time, the outstanding amount remains unpaid and has continued to grow.
The matter now joins a growing list of commercial disputes involving prominent politicians, business people and financial institutions across the country.
In recent years, banks have increasingly turned to the courts to pursue recovery of unpaid loans as economic pressure continues to affect businesses and individuals.
The tough economic environment has left many borrowers struggling to keep up with loan repayments, especially after rising operating costs and reduced business activity in several sectors.
Financial institutions on the other hand have intensified recovery measures to protect their loan books and reduce losses linked to non-performing loans.
The court battle involving Kuria is likely to draw public and political interest as the proceedings continue.
However, the court will ultimately determine the validity of the claims made by the lender and whether the money being demanded is legally recoverable.
Neither Kuria nor the company had publicly responded to the allegations at the time the case became public.
