How Court finds Absa justified in holding loanee’s title documents
On November 5, 2008, Kenneth Ndung'u Mburu entered into a loan agreement with Absa Bank where he received Sh2,550,000.
The loan was secured by legal charges over Mburu's residential property.
Fast forward to April 18, 2023, Absa issued a statutory notice demanding Sh1,388,436.55, which it stated was the outstanding amount in respect of the loan.
Mburu went ahead and paid the amount, and proceeded to request that the bank issue the discharge of charge and release of the original certificate of title for the suit property to him.
A discharge of charge is a process to redeem the original title from the bank upon the settlement of the housing loan with the financier.
As one would expect, after sending a request you have to wait for a response, which is what Mburu did until he co...