Peter Munga Loses Bid To Block Britam Shares Auction Over 3.35 Million Loan

Kenyan court lifts order blocking ABC Bank from auctioning Peter Mungas Britam shares to recover 3.35 million in loans.

Munga's attempt to withdraw a previous case was dismissed for failing to disclose a similar suit, deemed an abuse of court process.

Munga faces ongoing financial struggles as assets, including Britam shares, are at risk due to unpaid loans linked to Equatorial Nut Processors.

A Kenyan court has lifted an order blocking ABC Bank from auctioning Ksh75 million 560,000 worth of Britam Holdings shares owned by Equity Bank Group founder Peter Munga. The bank is seeking to recover Ksh433.76 million 3.35 million in loans owed by Equatorial Nut Processors Limited, where Munga holds a controlling interest.

Justice Dorah Chepkwony revoked the temporary orders Munga had secured in February after it emerged that he failed to disclose a similar application had already been dismissed by another judge at the Milimani Court in Nairobi on Jan. 29. Mr. Munga approached this court without disclosing that he had filed a similar suit seeking the same reliefs before another court, she said. This conduct amounts to an abuse of the court process and warrants immediate intervention.

After the issue came to light, Munga moved to withdraw the earlier case. But the judge dismissed this attempt, noting that withdrawing the first suit didnt erase the fact that he had failed to disclose it in the first place. This court is duty-bound to protect the sanctity of its process and cannot endorse conduct that undermines the fair administration of justice, she added.

With the court order lifted, ABC Bank is now free to auction the Britam shares pledged as collateral to recover the unpaid loan. In an earlier ruling, High Court Judge Alfred Mabeya pointed out that Munga had personally guaranteed the loan and willingly offered the Britam shares as security. Having signed a personal guarantee and indemnity, he is legally bound to fulfill the debt obligation after the companys default, the judge ruled.

Equatorial Nut Processors, based near Maragua Town in Muranga County, is a long-established enterprise that processes macadamia nuts, peanuts, and cashew nuts. The company reportedly employs more than 1,000 workers.