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How Nairobi businessman forged father’s signature to secure bank loan

The father of a city stationary supplier, who forged his signature to attach a family land title deed as loan security, has been offered a reprieve by the court.

81-year-old Nyambane Nyakwara had given his son Pius Nyambane the family land title deed for safekeeping but unknown to him he used it to secure a loan at National Bank.

The elderly man only got wind of the transaction when the bank gave instructions for the 6.5 acres of land to be sold to recover his son’s loan.

Mzee Nyambane then sued the bank at Milimani’s high court, commercial and tax division, seeking a permanent injunction to stop National Bank from selling his land.


During the hearing the court heard that documents presented to the bank by the younger Nyambane to show that his father had given him a consent letter and guaranteed the loan were all forgeries.

“He testified that he never authorized his son to take loan with the title nor did he stand as a guarantor for his son and further that he did not seek loan from the defendant nor did he apply for the consent from the Land Control Board,” read a ruling by Judge James Aaron Makau.

Paul Chelanga, the National Bank, Recovery Manger testified that “though they were aware of the claim of fraud they did not carry out any investigation.”

The judge in his ruling faulted the bank for acting casually and not verifying the documents presented to them.


“A permanent injunction be and is HEREBY entered in favour of the plaintiff restraining the defendant, its Agents, servants, employees and whomsoever acting on its instructions from selling, disposing, alienating, auctioning, transferring or in any manner whatsoever from dealing with TITLE.NO.KISII/MAJOGE/BOSOTI/1455. A declaration be and is HEREBY made declaring the registered Charge/Further Charge over TITLE No.KISII/MAJOGE/BOSOTI in favour of the defendant is illegal and void Abinitio,” ruled Judge Makau.

Interestingly, Pius Nyambane had sued Kenya Post Office Savings Bank few years after the bank transactions accusing the institution of unlawfully terminating his Sh2million supplies contract.

Post Bank, during the hearing, said that the cancellation was made after he was unable to fully supply the required stationary.

The then Judge Tom Mbaluto in his ruling that dismissed Pius’ claims wrote, “It would therefore appear to me that what the plaintiff says he did, amounts to an act of utmost folly and I would not have awarded him a penny even if he had succeeded in proving breach of contract by the defendant.”