Nairobi, May 11 -- The Supreme Court is set to issue a landmark judgment on whether borrowers can recover property auctioned by banks irregularly or through fraud and asset undervaluation.

The Court of Appeal has allowed former Limuru MP George Nyanja to seek the Supreme Court's intervention in recovering his Karen matrimonial home that City Finance Limited auctioned in 2011.

The former lawmaker wants the Supreme Court to hand back the property, arguing the lender sold it for Sh60 million against a market value of Sh295 million from an initial Sh8 million loan and a Sh3 million overdraft.

Past trends, including court decisions, have often awarded damages to aggrieved borrowers but have been hesitant to reverse completed property sales....