Real estate developer Comfort Homes has escalated a simmering loan dispute into a legal battle, filing a contempt of court application against two clients accused of defying court orders and waging a malicious online campaign to discredit the firm.

The company alleges that the clients, who owe Sh2.9 million from a loan already ruled upon by the court, have turned to social media to mislead the public and tarnish its reputation in a bid to evade repayment.

In the filing at the Kiambu Law Courts, Comfort Homes seeks orders barring the two from publishing or circulating any defamatory content against the company and its officials.

The firm is also demanding that they settle an outstanding debt of Sh2.9 million, which the company says remains unpaid despite a court judgment directing repayment.

“We have 18 years in business, over 30,000 clients, and 700 employees. Our reputation is built on trust, not deception. What they’re doing is a smear tactic to avoid repaying what they owe,” said Chief Executive Officer HEzekiah Kariuki Mwangi in an affidavit.

Mwangi accused the two clients of using social media platforms to spread false information about the company’s dealings and of deliberately twisting facts to mislead the public.

“Unless this Honourable Court urgently intervenes, the respondents will continue to disseminate defamatory content, thereby aggravating the applicant’s suffering and rendering any eventual judgment nugatory,” he said.

He described the situation as a case of defamation and emotional blackmail, arguing that the pair turned to public theatrics after losing a Sh3.5 million loan dispute in court.

“This is a clear case of manipulation and misinformation. We helped the client clear a debt taken elsewhere, and now the client is turning around to discredit the very institution that came to the rescue,” Mwangi added.’’

Court documents show that the dispute dates back to 2020, when the client approached Comfort Homes seeking financial help to offset a Sh2 million loan taken from another lender.

Comfort Homes agreed to buy off the debt and entered into a legally binding repayment agreement with said client.

Under this arrangement, The client received Sh1.2 million, later topped up with an additional Sh800,000, using her property as collateral.