Nairobi, May 31 -- The Supreme Court has frozen the transfer of a 25-acre Karen land worth over Sh2 billion associated with former Limuru MP George Nyanja as it prepares a landmark judgment on whether loan defaulters can reclaim auctioned property.

The apex court has halted Kingdom Bank and the property purchaser, Redmars Holdings, from occupying or transferring the land to a third party following Nyanja's defeat in the Court of Appeal.

The court is expected to decide on whether a loan defaulter can reclaim auctioned property instead of being awarded damages.

Mr Nyanja wants the land's auction annulled and the ownership reverted to him, although the Court of Appeal recently ruled that he cannot recover the land and that the only remedy...