The Lands Court in Nakuru has halted the sale of land owned by the Kenya Farmers Association (KFA) by the Barclays Bank of Kenya to settle a loan debt.
KFA moved to court on Monday to stop the bank from selling the land where it's headquarter is located after the bank placed an advert to auction the property on August 13, 2015.
KFA lawyer Gatu Magana filed a certificate of urgency before Judge Munyao Sila seeking an order to prevent Garam Investments auctioneers from selling the land on behalf of the bank.
He argued that if the intended sale is not stopped, KFA land which houses banks, Saccos, Colleges, corporate offices, a petrol station and private offices will be lost and their employees would suffer.
In an affidavit, KFA general manager Tom Ndiwo said that in the one-acre piece of land within Nakuru Town, KFA has developed a multi storied building which serves several commercial establishments and the association's headquarters.
Ndiwo narrates that the former Kenya Grain Growers Cooperative Union Ltd had provided the title as security for Sh77.2 million loan extended by bank. He said KFA has paid the bank Sh272.4 million in settlement of the debt.
Ndiwo revealed that the bank wrote to KFA management on May, 26 2015 claiming of a loan balance of Sh2,203,291,403.50.
Magana urged the court to stop the sale saying that the bank would suffer no prejudice claiming it has already been paid in excess of the loan debt.
"The court has looked into all pleadings and the application, but the court cannot verify all the issues at this stage," sad Justice Sila.
He ordered the stoppage of sale until the case is heard on October 8.