My ex turned our Sh350,000 business loan into a 'relationship gift'
After their breakup, Angela's ex-boyfriend sent her an 'expenditure report' claiming the loan Sh350,000she gave him funded their relationship.
What you need to know:
- Angela took a Sh350,000 loan to help her ex-boyfriend expand his pharmacy business.
- After their breakup, he refuses to repay the money, claiming it was spent on their holidays and dates instead.
- She now faces a 30-day auction notice for her household items.
Dear Vivian,
I took a loan of Sh350,000 on behalf of my boyfriend to help him expand his pharmacy business. We later broke up, and despite several requests, he has refused to repay, claiming that the amount was used to cater for our holidays and dates. He proceeded to send me an expenditure report for the seven months we were together. I am unemployed and struggling to repay the loan. I have now received a 30-day notice that my household items will be auctioned. Can I take any legal action?
Angela Mwebia,
Embu
Dear Angela,
This situation must be deeply frustrating and painful. Unfortunately, since the loan is in your name, the lender has the legal right to recover the money directly from you, including by auctioning your household items, even though the loan entirely benefited your ex-boyfriend.
You should urgently engage the services of a qualified advocate to guide you on the legal steps necessary to recover your money and attempt to halt the auction process. If you cannot afford the services of an advocate, you can visit civil society organisations such as Fida-Kenya, Kituo Cha Sheria, or the Kenya Human Rights Commission, all of which offer free or subsidised legal aid to individuals facing financial hardships.
Your first step will be to gather all relevant evidence. This includes your loan agreement or bank statements showing disbursement of the loan, proof of money transfers to your ex-boyfriend, and any written or electronic communications such as text messages, emails, or WhatsApp chats. If you have any witnesses who can attest that the loan was taken for his benefit, your advocate will also record their statements for use in court.
It is crucial to note that this type of agreement falls under oral contracts. An oral agreement is a contract made through spoken words and is legally valid provided that the basic foundations of a binding contract are in place.
Your advocate's first step will be to send your ex-boyfriend a demand letter, giving him a specific period—usually between seven and 14 days—to repay the debt. Simultaneously, you should approach your lender to request loan restructuring or an extension of time to repay, explaining your situation in an attempt to stop the auction.
This is a classic case for Small Claims Court, a specialised commercial court created by statute with specific duties and powers designed to provide judicial determination involving small amounts of money. Worldwide, these courts are characterised by simplicity of procedure, cost-effectiveness, and speedy resolution of disputes, thereby enhancing access to and expeditious delivery of justice.
Therefore, if your ex-boyfriend ignores the demand, your lawyer can file a civil suit at the Small Claims Court to recover the Sh350,000 plus interest and legal costs. The court may also suggest mediation to help you reach an agreeable repayment plan.
Vivian
The writer is an Advocate of the High Court of Kenya and award-winning civil society lawyer. [email protected]
