Banks fight bid to limit right to sell loan property
Nairobi, March 12 -- Kenyan commercial banks have opposed a petition that seeks to compel them to obtain mandatory court orders before selling off any property charged as security for loans taken in the event of a default, in a case that promises a major relief for consumers should it succeed.
The Kenya Bankers Association (KBA), the industry lobby, argued before a bench of three High Court judges in Mombasa that the relationship between a lender and borrower is contractual in which each party understands its responsibilities and the consequences for default.
"There is no obligation on the borrower to take a facility (loan) and also the lender to give it," Senior Counsel John Ohaga, acting for KBA, told Justices Olga Sewe, Gregory Mutai...
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