In a legal dispute over a building in Nairobi that the two lenders claimed to have financed at a cost of Sh160 million each, Equity Bank Kenya and NCBA Bank Kenya are currently involved.
Kinjunje Gardens Ltd. Is the owner of the building, and Equity claims that the charge NCBA registered for a loan taken out in June 2014 is a fake.
In contrast, Equity’s charge is deemed invalid by NCBA, which has attempted to sell the property at auction to recoup the loan.
As a result of the asset being charged to the bank and Kinjunje’s failure to make loan payments, NCBA was forced to sell the property at auction.
Equity later filed a lawsuit in an effort to stop the planned sale, claiming it also advanced the company Sh160 million to acquire the property.