A Nairobi businessman is suing Gulf African Bank for Sh45 million, claiming that the bank misplaced his title deed, which resulted in an aborted sale of his property, costing him potential profits.
Hashim Mohamed Kher borrowed money from the bank, using his title deed for his property in Nairobi’s South B area as security.
In 2013, he received an offer from Welldan Contractors to sell the land for Sh65 million, deciding to sell it as he would make over Sh6 million in profit after repaying the Sh58.75 million loan balance.
Mohamed wrote to the bank, asking for the title deed to be released so he could conclude the sale, but the bank informed him that the title deed had been lost.
As a result, Mohamed was unable to sell the property and lost out on the potential profit. He is also unhappy that the bank charged interest on the loan during the period that the title deed was lost, going against a promise not to levy penalties on the outstanding loan.
Gulf African Bank denies any wrongdoing, including the misplacement of the title deeds, which it says was due to an error by the courier, Data Rush Services Limited, while transferring documents to the bank’s lawyers.
The bank also disputes the value of the land, claiming that it was worth just Sh28 million, not Sh65 million, as alleged by Mohamed.
Mohamed claims that Gulf African Bank frustrated his efforts to relocate the loan facility to the National Bank of Kenya, beginning in January 2014, citing costly charges.
The loan was eventually transferred to the National Bank of Kenya, but Mohamed wants the court to order Gulf African Bank pays him Sh7.78 million in interest accrued between 2013 and 2014 when the loan transfer took place. He is also seeking the release of his title deed.
Gulf African Bank, represented by Wamae & Allen Advocates, denies ever receiving a request from Mohamed to release the title deeds for the sale of the land.
The case is ongoing, and the court will rule on whether Gulf African Bank should pay Mohamed the Sh45 million in compensation he is seeking, as well as his accrued interests and the release of his title deed.
