Couple Faces Property Auction Despite Overpaying Stanbic Bank Loan by Sh463 Million

A Nairobi couple is battling to save their matrimonial home and two other properties from auction after claiming they overpaid their Stanbic Bank loan by more than Sh463 million, yet the lender now demands an additional Sh163 million.

Nasser Abdulhamid Baksh and Makarim Ahmed Omar have moved to the High Court seeking to block Garam Investments Auctioneers from selling their three properties, including their Kitisuru residence, after what they describe as a decade-long ordeal of altered loan terms and unexplained conversions.

The couple’s troubles began with loans totaling Sh101.2 million borrowed between 2011 and 2014. To secure the facilities, they charged five properties across Mombasa, Kitisuru, and Nairobi. What started as straightforward Kenya shilling loans has since morphed into a complex dispute involving unauthorized currency conversions and escalating demands.

Central to their complaint is Stanbic Bank’s alleged unilateral conversion of their Kenya shilling loans to US dollars without proper notification or consent. The couple maintains they operated both dollar and shilling accounts through which they faithfully remitted loan repayments from 2011 to May 2025, believing they were servicing their original obligations.

The banking relationship deteriorated significantly when, despite regular payments that the couple claims exceeded Sh466 million, they discovered in 2022 that their loans had been converted to US dollars. This conversion, they argue, dramatically altered their repayment obligations without their knowledge or proper legal procedures.

“The said illegal conversions were procured in contravention of the Constitution of Kenya, Articles 35 and 46, and various applicable provisions of the Banking Act, the Consumer Protection Act, and the Central Bank of Kenya Prudential Guidelines,” Baksh stated in his court filing.

The situation became more perplexing when, in February 2025, the bank indicated the outstanding balance was merely Sh5 million, suggesting one property could settle the debt. However, by the time auction proceedings commenced, this figure had mysteriously ballooned to over Sh163 million, an amount the couple vehemently disputes.

Adding to their frustration, the couple alleges they were denied access to bank statements and loan account statements throughout their banking relationship until June 2025, despite multiple demands. This lack of transparency, they argue, prevented them from monitoring their true financial position and identifying discrepancies earlier.

The couple’s legal team argues that under the Duplum Rule, which prevents interest from exceeding the principal amount, their payments of Sh466 million against an original loan of Sh101.2 million should have more than settled their obligations. They contend that Stanbic’s currency conversion tactics circumvented this consumer protection.

High Court Judge Aleem Visram has directed the parties to appear for directions on September 22, 2025, as the legal battle unfolds. Beyond the court proceedings, the couple has also lodged complaints with the Competition Authority of Kenya, suggesting broader concerns about banking practices.

For the couple, what began as a standard home loan arrangement has evolved into a fight to retain their properties against what they describe as manufactured debt.

As auction deadlines loom, Baksh and Omar’s struggle represents a cautionary tale about the importance of loan documentation transparency and the potential consequences when borrowers and lenders operate with different understandings of contractual obligations.

For now, the couple awaits their day in court, hoping to prove that their decade of diligent payments should protect, not jeopardize, their family home.​​​​​​​​​​​​​​​​