Late businessman Tony Muiruri Gachokas family is to be left homeless if the Bank of Baroda is to have their way. The issue started back in 1979, where the businessman sought a loan from the bank to finance their businesses in Thika. However, upon his untimely death the Bank of Baroda took advantage and increased the loans interest from its original rate to 45 percent, which is three times more. The most annoying part is that the bank did not inform Mrs. Margaret Njeri Muiruri of the move before doing so, pointing out a malicious clause in the agreement where they can do so without informing the client.
Having already paid amounts amounting to 12 million, the Bank still sought their Eastleigh property, sold it and scame for the remaining property, as they were still demanding an additional Sh.70 million. On realizing the never ending battle, the widow decided to take the issue to court only to further be frustrated after a judge justified the increase in interest rates.
The court of appeal with a three judge bench comprising Judges Philip Waki, Gatembu Kairu and Mohammed Warsame has since reversed the previous verdict. Shocked at the malicious clause, they claimed that the respondent cannot hide behind a malicious claim sorting to keep the widow hostage.
In this case if all goes well not only will Tony Gachokas family remain in their home but all other borrowers will be shielded from the banks malicious clauses.
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