Thika:A Ministry of Trade employee has taken legal action against Platinum Credit Ltd, seeking Sh11 million in compensation after the company repossessed his public service vehicle (PSV) matatu, which was used as security for a loan.
According to Kenya News Agency, Daniel Wachira, an Assistant Director and National Coordinator at Kenya’s National Trade Facilitation Committee, claims to have sold the matatu for Sh720,000 on April 24, 2020, to Michael Gitau, who was financed by Platinum Credit. Wachira alleges that after transferring the vehicle and providing necessary documentation, he was assured that the purchase price would be deposited into his bank account, which did not happen.
Wachira informed a Thika Law court that months later, he discovered the vehicle had been registered under movable property security by the lender on May 4, 2020, without fulfilling the payment agreement. He reported the issue to the Thika Police Station and requested the National Transport and Safety Authority (NTSA) to place a caveat on the vehicle for protection.
Despite these efforts, Wachira stated that the lender’s auctioneers seized and impounded the matatu on July 14, 2020, while it remained in his possession. Prior to the dispute, Wachira operated the matatu as a public service vehicle, earning approximately Sh5,000 daily, and is now seeking compensation for lost income and damages.
Platinum Credit and other defendants have denied liability, stating that the vehicle was voluntarily used as collateral for a loan of Sh280,000 and an insurance premium of Sh66,839. They argue that the loan agreement permitted them to repossess the vehicle upon default to recover the debt and associated costs, requesting the court to dismiss the suit with costs.
Onesmus Kimani Mbugua, the broker involved in the transaction, testified that the lender did not pay Wachira the agreed purchase price, instead depositing the funds into Gitau’s account.
Resident Magistrate Evelyn Kithinji has instructed the parties to submit their final arguments within 21 days, with the case set for mention on February 11, 2027.
