Kingdom Bank CEO, Mr. Anthony Mburu appeared before Senate Committee on Roads, Transportation and Housing to deliberate on the petition regarding title deeds for properties bought in Jamii Bora Estate, Kisaju in Kajiado County. 

“The Co-operative Bank of Kenya Limited acquired majority shareholding of 90% in the Jamii Bora Bank in August 2020, and subsequently changed its name to Kingdom Bank Limited. With this acquisition, the Co-operative appointed new directors “said Mr. Mburu. 

At acquisition, the facilities to the developer formed part of the Bank’s book and the Bank began engaging the developer for viable solutions to the existing situation.

“We need to finalise this matter and ensure that these 78 owners who have paid all the dues owed to Jamii Bora are issued with title deeds.” said the Chairperson, Kiambu Senator Karungo Thangwa.

The Committee heard that the Bank advanced the Developer a credit facility of Ksh. 100 million via a letter of offer dated 28th November, 2014. The purpose of the facility as indicated in the letter of offer was to finance construction of houses on the project and to enable the Developer with loans to buyers. 

The borrowing is supported by resolutions of the Developer board dated 28th November, 2014. The facilities were disbursed o 28th January, 2015 and were secured by the existing charge of Ksh. 200 million over Kajiado/Kisaju/58.  

Jackson Kimathi, the Kingdom bank’s Head of Legal said that the balances outstanding from the Developer stood Ksh. 131, 386, 344/- as of 25th October, 2016, when the bank suspended accrual of interest on this account. The debt would by now be at Ksh. 200 million (due to the application of the duplum rule) as payments were made on this loan. 

The Kingdom Bank management told the Senate Committee that beginning 2014, the Developer commenced sale of the units developed on the project to various purchasers. The bank financed some of these sales on the arrangement in place and plans that on completion of the sub-division, the resultant titles would be charged to secure these loans to individuals. 

“The Kisaju home owners should be issued with title deeds so that they live peaceful with worrying of being evicted.” said Vice Chairperson of the Committee, Ms. Peris Tobiko. 

The total facilities advanced under the scheme were 377 loans with total value of Ksh. 175,937,495/-

“We wish to confirm that the bank and its advocates are in custody of the original mother title deeds for the Kisaju properties. The titles were forwarded to the advocates to facilitate the change of user process and for the registration of the replacement charges.” said Mr. Mburu. 

The Kingdom bank Head of Legal, Mr. Kimathi said that they had continuous engagements with the Developer in an attempt to find a workable solution to current impasse. The bank has agreed to cap the debt owing from the Developer at Ksh. 134, 386, 344/-, instead of Ksh. 200 million. The reason for capping this amount is to ensure the debt is within manageable levels.

Further, the bank has withheld adverse actions against the Developer and the property to facilitate the change of user process. The bank also temporarily discharged its charge to facilitate the conversion and change of use process.

In addition, the bank is ready and willing to release title deeds for all properties it financed and whose owners will have finished paying by the time the Developer has concluded the sub-division process. This is subject to concurrence by Jamii Bora Scandinavia.