The High Court in Nakuru on Thursday extended orders that temporarily halted the sale of a land parcel belonging to the Kenya Farmers Association (KFA).
The orders were yesterday extended to allow both parties file supplementary affidavits within 14 days upon which they will relay on when there will be an interparty hearing after they pick dates at the registry.
KFA’s one-acre prime land located at KFA roundabout in Nakuru risks being auctioned after the Barclays Bank of Kenya moved to court claiming more than Sh2 billion in loan arrears.
Justice Silas Munyao had stayed the intention to sell the Sh 500 million property of the company, a major supplier of farm inputs to farmers which was to take place on August 13 pending an inter-party hearing.
Barclays Bank had allegedly advertised the planned auctioning of the property through Garam Investments, an auction firm prompting KFA management to move to court seeking to have the process halted.
Through lawyer Gatu Magana the farmers association had rushed to court in a bid to stop the planned auction of the prime property claiming the firm had already repaid the debt in question.
“We have paid in excess of Sh200 million thus the bank is supposed to refund us the over paid cash,” read part of the affidavit sworn by the KFA general manager Tom Ndiwa.
KFA had argued that if the planned sale is not stopped its associates including its employees and Sacco’s amongst others will suffer irreparable damage.
However, the bank has maintained that the farmers association owes it the amount insisting that the money includes accrued interests at a rate of 22.5 percent.
KFAwas vibrant in the 1970s and 80s in supplying farmers with affordable farm inputs before it ran into debts running into millions.