The Co-operative Tribunal has rejected a request by a church official to halt a decision requiring him to repay Sh5.8 million borrowed from Sheria Sacco.
In August of the previous year, the tribunal ruled that David Ndumo, treasurer of the Presbyterian Church of East Africa (PCEA), must repay the loan he took in 2018 after defaulting. This decision followed efforts by 15 guarantors, members of Sheria Sacco, to recover the overdue loan. The guarantors, led by Juma Olago, engaged Wright Auctioneers to seize Ndumo’s assets when he failed to repay, leading to the guarantors assuming responsibility for the debt.
Initially, the tribunal ordered the auction of Ndumo’s properties, including three cars—Toyota Pass, Nissan Latio, and Toyota Prado—to help cover the loan. Ndumo contested this, claiming he had never received court papers and sought an injunction to prevent the auction.
The guarantors opposed Ndumo’s request, arguing he had misled the court. Their lawyer, Wambugu Wanjohi, contended that Ndumo’s application was made only after the guarantors moved to enforce the judgment. Wanjohi asserted that the claim had been filed in 2019 under urgent conditions and that Ndumo was served with the order in January 2020 in Nyeri town, where he acknowledged receipt.
The guarantors, including Olago, Charles Maina, Jane Njoroge, and Benjamin Ombogo, criticized Ndumo for neglecting the loan despite multiple notices and requested the court to dismiss his application, allowing the auction of his assets to proceed.
**Liability of Guarantors**
The auctioneers had already conducted a raid on Ndumo’s residence in Marurui estate, seizing items such as electronics, furniture, and vehicles to recover the loan that was covered by the guarantors.
The guarantors initially filed a claim against Ndumo on November 28, 2019, alleging that he had borrowed Sh5.8 million from the Sacco through various loans taken between March 14 and August 7, 2018. Despite numerous demands for repayment, Ndumo failed to service the loans.
The Sacco defended its actions, stating it adhered to legal procedures in pursuing the defaulted loans. The tribunal also heard that the Sacco had provided the guarantors with a loan, known as Mkombozi, which was utilized to settle the debt.
