Daniel Wachira, an Assistant Director at the National Trade Facilitation Committee of Kenya, has taken Platinum Credit Ltd to court, seeking Sh11 million in compensation. Wachira claims the lender repossessed his PSV matatu, which had been sold to Michael Gitau with financing from Platinum Credit. The matatu was used as security for a loan, but Wachira alleges that the lender failed to remit the purchase price to his bank account as agreed.
According to Wachira, he sold the matatu to Gitau on April 24, 2020, for Sh720,000 and provided the necessary documentation, expecting Platinum Credit to deposit the purchase price into his account. However, the money was never remitted. Despite this, Platinum Credit registered the vehicle under movable property security on May 4, 2020. Wachira reported the matter to the Thika Police Station and wrote to the National Transport and Safety Authority (NTSA) to place a caveat on the vehicle.
Wachira claims that on July 14, 2020, Platinum Credit's auctioneers repossessed and impounded the matatu while it was still in his possession. Before the dispute, Wachira operated the matatu as a public service vehicle, earning an average of Sh5,000 daily. He is now seeking compensation for lost income and damage to the vehicle. The lender and other defendants have denied liability, arguing that the vehicle was voluntarily offered as collateral for a loan of Sh280,000 and an insurance premium of Sh66,839.
Platinum Credit and the defendants argue that the loan agreement allowed them to impound the vehicle upon default and recover the outstanding debt and related costs. They have asked the court to dismiss the suit with costs, arguing that Wachira has not established a cause of action against them. Onesmus Kimani Mbugua, the broker who linked Wachira to the buyer, testified that Platinum Credit failed to pay the agreed purchase price to Wachira, instead depositing the money into Gitau's account.
The case has been ongoing, with Resident Magistrate Evelyn Kithinji directing the parties to file their final submissions within 21 days. The matter will be mentioned on February 11, 2027. Wachira's suit against Platinum Credit highlights the complexities of loan agreements and the repossession of vehicles used as collateral. The outcome of the case will have implications for similar disputes in the future.
The dispute between Wachira and Platinum Credit raises questions about the lender's practices and the protection of borrowers' rights. As the case continues, it will be essential to consider the evidence presented and the arguments made by both parties. The court's decision will provide clarity on the responsibilities of lenders and borrowers in similar situations.
The plaintiff's claim for Sh11 million in compensation will be evaluated based on the evidence presented. If the court rules in Wachira's favor, it could set a precedent for lenders to honor their agreements and respect borrowers' rights. Conversely, if the court dismisses the suit, it may establish that lenders have the right to repossess vehicles used as collateral in cases of default.
Key points
- Daniel Wachira is seeking Sh11 million in compensation from Platinum Credit Ltd for the repossession of his PSV matatu.
- Platinum Credit and the defendants argue that the vehicle was voluntarily offered as collateral for a loan and that they had the right to impound it upon default.
- The case will be mentioned on February 11, 2027, after the parties have filed their final submissions.
