According to documents, the asset-financing facility was only serviced for a few months before the repayments were stopped.
Zaheer Jhanda sued for defaulting bank loan
KCB has sued politician Zaheer Jhanda for defaulting on an Sh8.9 million loan.
An outstanding portion of the loan has accumulated to Ksh12.1 million as at November 2016.
In a notice published, Jhanda was required to respond to KCB’s demands relating to the outstanding loan, failure to which the bank would move to court.
KCB, through lawyer Walker Kontos, was in court to seek orders to enable it to recover Ksh18.6 million owed collectively by the Jhanda and his guarantor.
Bank clamps lorry
The duo, according to the court papers, has admitted the debt but neither made commitment nor responded to the petition.
Jhanda, who is at the centre of an unfolding fake gold scandal, was loaned the money in an asset financing agreement for the purchase of a lorry.
His guarantor is now being required to pay Ksh6.5 million.
Jhanda is said to have serviced the loan for only six months, prompting the bank to clamp the lorry and consequently had it auctioned.
The lorry, a Mitsubishi Fuso, was auctioned on April 26, 2016, for Ksh5.1 million, which was below its current market value of Ksh6.87 million.
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