Tanzanian music star Harmonize has been ordered to pay a hefty Ksh5.4 million (over Tsh152 million) following a default on a bank loan. The decision came from the Tanzanian High Court in Commercial Case No. 151/2023.
Harmonize, whose real name is Rajabu Abdul Kahali Ibrahim, took out a loan of Tsh300 million (about Ksh14.2 million) from CRDB Bank in October 2019.
The funds were to fund music equipment, a production studio, and promotional work.
Harmonize was required to repay the loan within three years, with an 18% annual interest rate.
He was required to deposit all his business proceeds into a designated account.
Harmonize Defaults on Bank Loan
At first, Harmonize made payments as agreed. But he later defaulted.
Despite several court summons and attempts by the bank to collect the debt, including a notice published in the Mwananchi newspaper, Harmonize, who once bought ex-girlfriend Paula Kajala two Range Rovers, did not respond or submit his defense.
Judge Cleophas K. Morris reviewed the case and by default ordered Harmonize to pay the outstanding amount, plus 18% interest from the date of default to the judgment date. And 7% interest from the judgment date until full repayment.
The court also awarded the bank Tsh10,000,000 in general damages.
By Vivian K.
