Desh Kananura dragged to court over sh120m debt

Flamboyant city businessman, Andrew Kananura alias Desh has been dragged to the Commercial Court over sh120m debt owed to Crane Bank Limited.

The bank contends that in the year 2014 it extended to Kananura an overdraft facility of sh65m for importation of his car, payable in 2 months, and attracting interest of 24% per annum and penal interest of 36%.

The company further avers that Kananura promised to pay back the money within two months and it was to attract interest at the rate of 24% per annum.

The bank dragged Kananura to court through M/S Walusimbi and Company Advocates a fortnight ago.  

The cause of action arose on July 3, 2014 when Kananura requested the bank to advance to him an overdraft facility worth sh65m with interest but all in vain.

According to the bank, Kananura's conduct amounts to breach of contract which has subjected it to unnecessary financial loss exacerbated by inflationary tendencies and costs for instituting the suit which the bank claims.

In his affidavit, Seiko Bashir of M/S Walusimbi and Company Advocates said Kananura has refused to pay the debt despite several reminders from the bank.

The bank is seeking a court order, directing Kananura to pay the said money which has accumulated at a 36% interest per annum.

It is alleged that Kananura secured the payment with a cheque but it bounced because his bank account had no funds.

The bank further states in the affidavit that Kananura has at all material times been aware of his indebtedness to the bank.

According to court documents, Kananura has not yet filed a defence to the suit nor paid the debt.