THE Barclays Bank of Kenya and a businessman have agreed to settle a Sh600 million debt dispute amicably. In a deed of settlement filed in court, the bank and Michael Muigai agreed to sell some parcels of land in order to repay the debt owed by Muigai.
The parties agreed that the amount would be fully settled before January. It was further agree that the bank would discharge the securities upon the receipt of the money. The proceeds of the sale will be paid directly to the bank without any deductions and any balance, after deductions will be refunded to Muigai.
In case the amount is less, Muigai will top it up, reads part of the agreement. In the case, the bank had been threatening to sell five parcels belonging to Muigai, situated on the Thika Superhighway, to recover the debt advanced to him.
Before reaching the agreement, property developer - Suraya Property Group - had obtained an injunction stopping the sale, saying they had agreed with Muigai to develop a housing estate on the 242 acre-piece. Muigai and Suraya had entered into an agreement to develop the estate, to be known as Oak Valley Estate, but the project stalled over differences.
But yesterday, the parties agreed to sell the parcels that were not in contention to offset the debt. The parties agreed that Sh170 million will be paid by August 31 and another Sh130 million by the end of September. Sh200 million will be paid by October and a balance of Sh175 million will be cleared before January 2013. The bank will pursue the debt if Muigai fails to honour the agreement.