Last Updated on April 30, 2026 by courtnews reporter

Graphics Lineups vs DIB Bank Case: Firm Seeks to Stop Auction Over Sh80 Million Loan

Updated: April 30 | CourtNews Kenya

Graphics Lineups DIB Bank case Kenya Overview

Graphics Lineups DIB Bank case Kenya is at the center of a High Court dispute after a Nairobi-based printing firm moved to stop the auction of its property.

The case raises concerns about loan recovery processes, statutory notices, and alleged unlawful repossession. It is currently before the High Court.

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Background of the Case

Graphics Lineups Limited has filed a petition against DIB Bank Kenya Limited seeking to block the sale of its property.

The firm is asking the court to restrain the bank from:

• Repossessing the property

• Advertising or selling the land

• Interfering with its possession

The disputed property is LR No. 209/136/130 in Nairobi County.

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What is the case about?

The case involves:

• A disputed loan of approximately Sh80 million

• Threat of auction over alleged arrears

• Claims of unlawful recovery process

Additionally, the dispute centers on compliance with legal procedures under the Land Act.

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Loan Details and Payments

According to court documents:

• The company secured financing through Murabaha and Ijara arrangements

• The loan was secured against the Nairobi property

• The firm claims to have repaid over Sh82.5 million

However, it fell into arrears due to economic challenges.

Graphics Lineups DIB Bank case Kenya explained

The Graphics Lineups DIB Bank case Kenya explained focuses on whether the bank followed proper legal procedures before initiating recovery.

The company argues that the process was flawed and violated statutory requirements.

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Dispute Over Auction Process

The firm states that:

• A final demand letter was issued in April 2025

• Auctioneers visited the premises in May 2025

• The property was allegedly advertised for sale

However, the company claims it was never served with:

• 40-day statutory notice of sale

• Redemption notice required under the law

Claims by the Company

Managing Director Noor Mohmud Shirwa told the court that:

• The firm remains willing to settle arrears

• Attempts at reconciliation have failed

• The bank is acting in bad faith

He emphasized that the property is the company’s only major asset.

Concerns Over Valuation and Charges

The company further alleges that:

• No current valuation report has been provided

• Loan statements have not been regularly shared

• Interest and penalties are excessive

Shirwa argued that the bank may have violated the in duplum rule, which limits interest accumulation.

Why the Case Matters

This case is important because:

• It highlights disputes in loan recovery processes

• It raises concerns about borrower rights

• It questions compliance with statutory requirements

Frequently Asked Questions

What is Graphics Lineups Limited?

It is a Nairobi-based printing firm involved in a loan dispute.

What is the case about?

It involves an attempt to stop auction of property over a disputed loan.

Is the case ongoing?

Yes, the matter is before the High Court.

Conclusion

The dispute between Graphics Lineups Limited and DIB Bank Kenya Limited brings into focus the balance between lender rights and borrower protections.

The court will determine whether due process was followed before the attempted auction.