Guarantor

Does a bank have authority to report a guarantor of a bad loan to CRB?

Soma terms and conditions before agreeing to be a guarantor

Nairobi auctioneers yesterday placed billionaire businessman Peter Munga’s Sh400 million estate up for sale, citing his failure to settle an unspecified amount of money owed to a bank.

Galaxy Auctioneers, in a notice published in the local dailies, invited those interested in buying Mr Munga’s five units of four-bedroom maisonettes in Kasarani’s Stone Groove Estate to be present at an auction event to be held at the end of this month.

“The decision to auction the properties arose from Mr Munga’s decision to guarantee a friend,” said John Gitogo, the finance director of the billionaire’s Equatorial Nut Processors Limited.

Thanks for this informative case study.
Was he placed in CRB? That is the question.

T&C is silent on blacklisting at CRB

What is worse, being auctioned or CRB’d?

Being auctioned and being declared bankrupt is worse. But if you have an answer to my question regarding CRB, I’d be more than grateful.

you guy, yes anaweza wekwa kwa CRB akikataa kulipa!

Ahsante.

No guarantor only his assets should be held but not dragged to crb as he is not the borrower.

what assets?

how do they know what assets you have?

For you to qualify as guarantor your bank statement should be better than that of the borrower. In saccos your shares must be more than half of what is being borrowed. Eg if someone wants a loan of 1m he must get a guarantor who has 1m shares or two with 500k each or 3 as long as watapata principal ukikosa kulipa.
In banks they check your statement na borrower akianza kulemewa they restrict you from withdrawing

The smart ones do go for voluntary bankruptcy. Then no one can touch you after the bankruptcy court adjudges on it…

Utawekwa CRB. I know of many who have. The purpose of guaranteeing is to pay if the borrower is unable to pay. Basically, you become a co-borower