The 60,000-acre Giriama Ranch in Kilifi County may be auctioned over a loan dating back to 2007 that now stands at an estimated Sh2.6 billion.
The ranch owners were given three-months to clear the loan by the African Development Bank or the property would be auctioned.
But ranch chairman James Kitsao told the Nation on Wednesday they would go to court to protect their property, which traverses Kaloleni and Ganze constituencies, as they were not party to the loan.
“As the current directors of this ranch, we were shocked to receive a letter from the bank about an unserviced loan taken in early 2007 that we are not aware of,” he said by telephone.
Fake title
He said a member of Parliament, whom he did not name, used a fake title deed to obtain a Sh258 million loan from the bank five years ago.
The MP presented the fake deed after saying the original one was lost. Mr Kitsao said they have the original title deed in their custody.
The MP was previously the chairman of the giant ranch who, through a notice in the Kenya Gazette, made a false report at the lands office that the original title deed was lost.
“Our worry is that he used a dubious document behind our backs to get a personal loan while purporting it to be for the ranch,” he said.
Mr Kitsao asked how the bank gave such a loan to an individual without involving the board of directors.
The ranch owners were given three-months to clear the loan by the African Development Bank or the property would be auctioned.
But ranch chairman James Kitsao told the Nation on Wednesday they would go to court to protect their property, which traverses Kaloleni and Ganze constituencies, as they were not party to the loan.
“As the current directors of this ranch, we were shocked to receive a letter from the bank about an unserviced loan taken in early 2007 that we are not aware of,” he said by telephone.
Fake title
He said a member of Parliament, whom he did not name, used a fake title deed to obtain a Sh258 million loan from the bank five years ago.
The MP presented the fake deed after saying the original one was lost. Mr Kitsao said they have the original title deed in their custody.
The MP was previously the chairman of the giant ranch who, through a notice in the Kenya Gazette, made a false report at the lands office that the original title deed was lost.
“Our worry is that he used a dubious document behind our backs to get a personal loan while purporting it to be for the ranch,” he said.
Mr Kitsao asked how the bank gave such a loan to an individual without involving the board of directors.
