27 March 2014

Kenya: Mombasa Pays Sh180 Million Bank Debt

MOMBASA county government has received another Buxton estate title deed from Family Bank after paying a Sh200 million debt inherited from the defunct municipal council.

The estate, which houses 346 families, had been taken by the bank after the defunct municipal failed to pay a Sh102 million loan at 47 per cent interest rate.

The council had taken the loan to pay salaries for its workers after they threatened to go on strike.

The loan accrued to Sh200 million after penalties and interests were added and the municipal council gave out the title to the estate after it became apparent they could not settle the debt.

Yesterday Governor Hassan Joho received the title from the bank's Jomo Kenyatta branch manager Venant Mkindi after paying Sh180 million.

The bank gave back the title after Joho and his team agreed to settle the remaining Sh20 million on a later date.

Speaking during the function attended by Buxton residents, Joho said they will continue fighting for all the public property lost in the hands of the previous leadership.

"We will never be cowed by any person, but instead we will work to change the lives of the people of Mombasa in housing, health and education," he said.

He faulted leaders who critic everything the county is doing without asking or trying to consult with them.

"We found Mombasa in a terrible condition, all properties had gone and we have managed to salvage some. Instead of you joining us in the fight you take your criticism to social media," he said.

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