If you sign as a guarantor and charge your own land as security, the bank can go after that land when the borrower defaults. It does not have to chase the borrower first, and an argument over how much is owed does not by itself stop a sale.
What it means to charge your land
A guarantor promises to stand behind someone else’s loan. Sometimes the bank asks for more than a promise and takes a charge over the guarantor’s land. A charge is a legal claim over the land that the bank can enforce if the loan is not paid. The bank’s rights over that land come from the charge. A guarantor who charges property is treated as a chargor, which is the name for the person whose land is charged.
So if you put up your plot for a friend’s or relative’s loan, you are not just a bystander. Your land is on the line.
The bank need not go to the borrower first
Under the Land Act, 2012, once the borrower has defaulted and the statutory notices have been served, the chargee (the bank) may use its remedies against the charged land, including sale. It need not first sue the borrower or exhaust its remedies against him.
In practice, a bank can move straight to the land you charged, even while the borrower is still around and could be pursued. The High Court has taken this view in an interlocutory ruling, which is a ruling made before the full trial. That ruling may be appealed and the trial is still pending, so the safest thing is to rest on what the statute says.
A dispute over the balance does not stop the sale
Many people think that if they challenge the bank’s figures, the sale must pause. That is not the position. A dispute over the balance does not by itself stop a sale. Courts usually require the chargor to pay the undisputed amount, or deposit security, before they restrain a sale. If the bank has overcharged, the remedy is generally damages or an accounting, meaning a proper statement of what is owed.
This does not leave a guarantor powerless. The bank must first serve the statutory default and sale notices and allow the redemption periods. Courts can still stop a sale where notices were defective or where the chargor pays the undisputed sum.
Practical steps
- Before signing, read the charge and guarantee documents and ask for copies.
- Understand that your land, not only your word, is at stake.
- Keep every notice the bank sends you and note the dates you received them.
- If the borrower falls behind, act early and ask the bank in writing for a statement of the balance.
- Speak to an advocate quickly if you receive a notice or disagree with the amount claimed.
📚 Okech v Equity Bank Kenya Ltd & 2 others [2026] KEHC 15730 (KLR)
Entertainment and general information, not legal advice. For advice on your own situation, speak to an advocate.