Kenya Women Finance Trust has come under scathing attack from clients who claim they have been unfairly treated. It has now forced their client Catherine Wanjiru to write to KWFT through her lawyer demanding an explanation over what she claims unfair business practices.
According to the letter by Wanjiru’s lawyers on July 26 2016 or thereabout, KWFT granted our client loan facility of Sh1m which was to attract an interest of 20pc per annum.
KWFT went ahead and registered a chattel mortgage over the milk dispensing unit and chiller tank belonging to Wanjiru to secure the financial facilities granted to our client.
Records indicate that Wanjiru consistently complied with her contractual obligations, save for few instances when she fell in arrears for some reasons.
It is now claimed that KWFT is to be blame for the financial quagmire Wanjiru found herself in as KWFT blatantly breached their statutory obligation to review the interest rate from 20pc per annum to a low 10pc to 4pc in line with amendments made to the banking Act.
Wanjiru claims that despite KWFT blatant violation of the law, they have proceeded to pile pressure on Wanjiru to illegally pay up levied interest rates which exponentially escalated the payment and listed Wanjiru with a credit reference bureau in total disregard and violation of her rights to access of credit.
According to Wanjiru, on September 4 2017 or thereabout, KWFT purported to kickstart recovery process against Wanjiru without following due process.
The letter from Wanjiru’s lawyer to KWFT reads in part: “On the foresaid date, you armtwisted and maliciously led our client to believe that you will suspend the illegal realisation of the security if she pays Sh50,000, which amount she settled and have a balance of Sh104,650 settled on or before September 19 2017, which amount she has now settled, facts of which are within your knowledge”.
The lawyer claims that barely the client was handed over the Sh50,000 than KWFT agents descended on her business premises situated at Dagoretti Corner, Sunny Park Building and forcibly dismantled and carted away the milk dispensing unit and chiller tank worth Sh730,000 and in the process occasioning loss of business and mental anguish to Wanjiru.
The letter further reads: “Your actions bespeaks malice and is affront of justice as they failed to thread a well beaten path of debt recovery and most importantly, the process of realisation of securities”.
The lawyers are now demanding an immediate return and mounting of the milk dispensing unit and chiller tank to the business premises of Wanjiru. He further demands that the milk dispensing unit and the chiller tank must be in the form and status they were prior to dismantling and carting away.
The lawyers are also demanding for an immediate recalculation of the interest due from the date when amendments to the banking Act on interest rates came into force and thereafter the immediate refund of the excess amount paid by Wanjiru.
The letter states: “Penalties, incidental and or recovery costs should not be factored or deducted considering that you are in breach of the law”.
He is also demanding unconditionally delisting of Wanjiru from the credit reference bureau and to admit liability of the loss of business and anguish caused to our client with a view to have amicable settlement in form of damages.