Loan Dispute Deepens as Defendants Challenge Credit Bank’s Sh72.1 Million Claim

A court battle has emerged over a disputed Sh72.1 million loan claim after former Cabinet Secretary Moses Kuria and other respondents moved to challenge a suit filed by Credit Bank.

The lender is seeking to recover Sh72.1 million linked to loans advanced in 2019 for projects at Bomet University College. According to Credit Bank, Smith & Gold Productions Ltd, where Mr Kuria and Aloise Kinyanjui are directors, borrowed the funds to finance project-related certificates but failed to repay despite repeated demands.

Credit Bank argues that breaches of credit agreements and guarantees led to the debt growing from Sh59.7 million in May 2024 to Sh72.1 million by September 2025 through contractual and penalty interest.

Court documents show the bank first issued a Sh10 million loan in September 2019 at 13 percent annual interest, repayable within 120 days. After that facility was reportedly cleared, the lender extended a second Sh20 million facility in December 2019.

According to the bank, the second loan later fell into arrears and was restructured in December 2022 into a Sh40.9 million term loan to be repaid over five years through monthly instalments of Sh932,486.

Credit Bank is asking the court to declare the defendants jointly and severally liable for the debt, alongside 13 percent annual interest, costs and other relief. However, Mr Kuria and his co-defendants want the Milimani Commercial and Tax Division to dismiss the case, describing it as “fatal, inept, incompetent and ambiguous.”

They deny signing the guarantees and restructuring agreements, dispute the alleged loan arrangements, and argue that any money advanced was a grant and not a recoverable loan.