Retired banker loses house after cousin he guaranteed fails to repay KSh 12million loan to Shylock Kenya News
- The retired banker had issued his security to be used as collateral for a loan guaranteed by his relatives
- The parent, however, did not honor the loan, taking a second loan that she intended to use to clear the first.
- She couldn’t handle both and therefore the lenders turned to her guarantor, the retired banker.
An elderly man and his wife were evicted from their home after relatives failed to honor a debt owed to two shylocks.
Identified as Francis William Balyokwayibwe, the 68-year-old man, who is a retired banker, had been used as a guarantor for a loan guaranteed by his cousin, a Barbra, from the shylock.
William was a director at Stanbic Bank in Uganda from 1977 to 2005, when he retired.
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Barbra allegedly used the title of retired banker to secure a KSh 2.2million loan from said money lender in July 2018.
She said she expected a lot of money and shared a plan with William who accepted the loan agreement at the time and offered her land title to the same.
According to reports, the loan from Doreen was to be repaid monthly at constant 20% interest.
The loan was to be used by Barbra’s family in a grain export business.
However, the family defaulted on the loan for almost a year, which accrued to KSh 6.5 million.
After a series of discussions, the lender and the creditor managed to negotiate a reduction which brought the loan value and interest to KSh 5.6 million from the original KSh 6.5 million.
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Barbra gets a second loan to service the first
Under pressure to clear the outstanding KSh 5.6 million loan, Barbra hired another money lender (identified as Francis Mutabaazi) from whom she obtained KSh 6.8 million, which she had. intend to use to clear the first loan and funnel the balance to their ailing grain business. .
However, she failed to repay the two loans, prompting the lenders to seek intervention from the courts.
The loans have now taken their toll on William and his wife after securing their cousin, Barbra.
The couple said they could no longer access their house after the bailiffs evicted them, along with their property for non-payment of loans, which now amount to KSh 12.4 million.
The family was evicted on the basis of an order issued on May 18, 2021 by the Ugandan Magistrates’ Court in Nabweru to Shrewd Solutions Limited, stating that William, a tenant of the house in Mutabaazi, had not paid his rent for more than a year.
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She said the initial loan was shared equally between the two families, but was not enough to address the issues the family had at the time, forcing them to take additional loans to keep them afloat.
Mutabaazi, said lender said the case will be dealt with by the courts.
Source: Tuko Breaking News