Nakuru Town West Member of Parliament (MP) Samuel Arama has lost a court case where he was seeking to stop Family Bank from auctioning his 0.15-hectare piece of land.
Arama had used the land registered under his wife Florence Mandere Masita as collateral to secure a Sh3 Million loan.
Environment and Lands Court Judge Dalmas Ohungo dismissed Arama’s claims that Family Bank failed to serve a notice to his wife who is the registered owner of the collateral.
Justice Ohungo argued that Mrs Arama was duly served and declined to restrain the bank from disposing of the land.
"The mortgagee (Family Bank) will not be reinstated from exercising its power of sale because the amount is in dispute and or because the mortgagor (Arama) objected to the manner in which the sale is being arranged," Justice Ohungo's ruling read.
The judge, however, noted that the bank could be restrained from selling the land if the MP pays the amount owed.
Mr Arama obtained the Sh3 Million loan in 2013 to fund a business which he said, did well at first but started dwindling due to alleged hard economic times and inflation, making it difficult for him to service the loan.
Following his failure to repay the loan, the bank instructed auctioneers to sell the land.
The bank intended to sell the land at Sh9.15 Million an amount he said was far much below its current value, approximately Sh25 Million.
Arama is looking to defend his seat on a Jubilee Party ticket.
