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A recent court ruling has clarified that banks are legally permitted to pursue loan guarantors for repayment if a primary borrower's assets fail to cover the loan through auction. In a separate case, the High Court has frozen a payment of Sh4.5 billion by the Kenya Electricity Transmission Company (Ketraco) to a Spanish contractor amidst a dispute. Meanwhile, Kenyan sugar farmers are expressing serious concerns that ongoing court battles are hindering crucial reforms intended to revitalize their industry. These legal proceedings and rulings are creating significant financial impacts across Kenya's banking, energy, and agricultural sectors.
A recent court ruling in Kenya has clarified that banks are legally permitted to pursue loan guarantors for repayment of debts, even if the primary borrower's assets have failed to cover the entire loan through auction sales.
The High Court has frozen a payment of Sh4.5 billion by the Kenya Electricity Transmission Company (Ketraco) to a Spanish contractor, following a dispute over the funds. This action prevents the disbursement of the substantial sum amidst ongoing legal proceedings.
Kenyan sugar farmers are expressing serious concerns that ongoing court battles are hindering crucial reforms intended to revitalize the sugar industry. The farmers' alarm signals a growing frustration with legal disputes impeding progress in a vital agricultural sector.