Housing Finance offices. [Photo/BusinessDaily]
Housing Finance Company has been sued by a real estate developer for overcharging it for the construction of residential houses in Kiambu.
Hadar Limited filed a suit at the High Court where it claimed that it had repaid Sh167 million HFCK loaned the company for the construction of the three- and two-bedroom houses.
The firm says that HFC was still demanding payment despite an audit report showing an excess payment of Sh4 million.
“We are asking the court to stop HFCK from executing a threat to sell the remaining developed housing units since it has unlawfully overstated the interests due to justify its claim. The records show that the whole loan has been fully paid,” said lawyer Titus Koceyo.
The company stated that it had an agreement with HFCK for the loan to facilitate the construction of houses on two parcels of land in Kikuyu, after which the lender would dispose of some of the houses to recover the amount advanced.
"On August 19, 2013, the parties executed a letter of offer and HFCK approved a construction loan facility of Sh113 million for the project. The loan tenure was for 24 months and the project was to cost Sh167,394,000,” said Mr Koceyo.