- Equity Bank to pay KSh1.08 million to a customer over a lost logbook.
- The logbook was used as security for a KSh500,000 loan in 2015.
- Pauline Wanjiku Njenga had cleared the loan by 2016 but never got back the logbook.
- The bank blamed Njenga for delays, but she denied the claims.
- The initial award was KSh4.68 million, reduced to KSh1.08 million on appeal.
A Nairobi court has found Equity Bank responsible for losing a vehicle logbook that was offered as security for a loan and directed the bank to compensate the affected customer. The dispute began after Pauline Wanjiku Njenga deposited the logbook to borrow KSh500,000 back in March 2015.
Though the logbook belonged to Anne Wangari Gitonga, Njenga had already entered into a purchase agreement with her and was using the car for business. She provided documentation to prove partial ownership before the bank issued the loan.
Bank Fails to Return Document
After clearing her loan in 2016, Njenga requested the return of the logbook. However, the bank confessed that the document had been misplaced. They claimed to have reported the matter at Thika Police Station and begun the process to replace it.
Equity, however, accused Njenga of delaying the replacement process by not bringing the logbook’s registered owner. This led to a back-and-forth that dragged on for years.
Njenga Files Civil Suit
Dismissing the bank’s claims, Njenga argued that Equity was well aware of the vehicle sale agreement when approving the loan. She said the bank never told her about the missing logbook until after she followed up.
Feeling the bank’s mistake had cost her financially and limited her access to further credit, she moved to court in 2019 and filed a civil case.
Court Reduces Compensation
Initially, the court awarded Njenga KSh4.68 million, noting the bank’s negligence over three years. But after Equity Bank appealed, Justice Florence Muchemi reviewed the case and reduced the amount. She ruled that the bank was only liable for one year’s worth of damage and settled the compensation at KSh1.08 million.
