Retired African Inland Church Bishop Silas Yego. FILE PHOTO | NMG
Summary
- Several prominent personalities including a retired clergyman, businessmen, renowned journalist and a host of former and current politicians faced auctioneers’ hammer this year as they battled with banks over loans they were unable to repay.
- They are struggling to hold onto their prime assets over mounting bank loans as Kenya’s economy slows down and repossessions pick up.
- For some, a last-minute effort saved their houses from imminent sale while others sought court orders to stall the process.
Several prominent personalities including a retired clergyman, businessmen, renowned journalist and a host of former and current politicians faced auctioneers’ hammer this year as they battled with banks over loans they were unable to repay.
They are struggling to hold onto their prime assets over mounting bank loans as Kenya’s economy slows down and repossessions pick up. For some, a last-minute effort saved their houses from imminent sale while others sought court orders to stall the process.
Silas Yego
Retired African Inland Church Bishop Silas Yego who rushed to court to save his 50 high-end apartments in Kileleshwa from being sold over a debt of Sh145 million owed to Transnational Bank.
The bank had already instructed Purple Royal Auctioneers to auction the property but through his company Siro Investments, Bishop Yego got a reprieve, when the auction was suspended to allow him lodge an appeal.
The retired clergyman borrowed the money from Transnational Bank in 2014 to construct 50 apartment units on the property. The project, however ran into trouble after third parties who had committed the buy the apartments bolted. Mr Yego, 71, last year retired from the church after serving for 45 years.
William Guda Osewe
Businessman William Guda Osewe, the owner of popular city restaurant K’Osewe, has been fighting to stop auctioneers from selling his Blue Waters hotel in Kisumu over a debt of Sh328 million.
In the dispute, Guaranty Trust Bank said the loan was secured using the Kisumu hotel and a building in Nairobi’s South C. The bank has been trying to auction the property since 2018.
The property sits on a 1.2 acre plot comprise of an incomplete seven storey commercial building with a mezzanine floor which is 60 percent complete.
Gideon Ndambuki
Former Cabinet minister Gideon Ndambuki is fighting to block the auction of his six-storey hotel in Machakos town over a Sh80 million loan. FILE PHOTO | NMG
For the past five months, auctioneers have been putting up for sale, a hotel belonging to former Minister Gideon Ndambuki to recover a loan of Sh80 million owed to Housing Finance.
Mr Ndambuki, who served as Kaiti MP and a minister for Planning and National Development during President Daniel Moi’s regime, has made several attempts to ward off the auctioneers.
In August, the former minister unsuccessfully sought to stop the auction so that he could sell the property to Machakos Teachers Sacco instead.
Atul Shah
Mr Atul Shah. FILE PHOTO | NMG
KCB Group
won the fight with three other banks seeking to auction a prime property belonging to the CEO of fallen retail giant Nakumatt, Atul Shah, over a Sh2 billion debt.
The bank sold the property to Furniture Palace International Ltd for Sh1.04 billion, taking a loss of about Sh1 billion. The judge questioned the credit appraisal of the lenders, wondering how multiple banks would offer loans worth Sh4 billion based on a single security valued at less than Sh2 billion.
The former Nakumatt CEO had sought orders stopping the auction after KCB revealed that it had already entered into a sale deal with a third party and the transaction would be frustrated if the application was not determined before November 25.
In an affidavit Atul’s son -- Ankoor Shah -- told the court that KCB had undervalued the property, arguing that it had found a buyer who would purchase the land and office block for Sh2 billion.
Jeff Koinange
Citizen TV Jeff Koinange. FILE PHOTO | NMG
In April, prominent journalist Jeff Koinange save his two four-bedroom villas from sale to recover a loan of Sh130 million owed to NCBA bank.
The auction of the houses in the high-end Kitisuru suburb had already been scheduled but the Citizen TV journalist inked a repayment deal with the bank, according to a source at Garam Investments — which had already prepared for the bidding.
The auctioneer hinted that it had already received interest from a number of investors who were expected to place a deposit of at least Sh5 million ahead of bidding for the prime homes,
NCBA was seeking to recover at least Sh65 million from the sale of each of the two villas over a debt that fell into default last year.
Hosea Kiplagat
Businesman Hosea Kiplagat. FILE PHOTO | NMG
Hosea Kiplagat is yet another prominent personality who fought off auctioneers trying to sell his property over a loan of Sh375 million. The loans were taken separately by his companies in May 2018.
Bank of India instructed Garam Investments to sell several properties, including his Karen home, to recover the money that Mr Kiplagat guaranteed his two firms — Eldoret Concrete Poles Limited and Timber Treatment Limited.
But the reclusive Kiplagat obtained an order from the High Court, stopping the auctioneer from proceeding with the sale.
The auctioneer was targeting Mr Kiplagat’s Karen home, which sits on five acres and 11 other pieces of land in Eldoret, belonging to the two companies.
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