Current Wave of Property Auctions; Big Names are Not Spared
With tough economic times, banks are getting more aggressive in reclaiming loans. Their actions may seem too dramatic to some, but business is business. On March 29th this year, the Daily Nation newspaper had six pages of properties being auctioned.
It is a sad turn of events as more and more properties continue being auctioned. Some auction companies admit that business on their part is doing well but it is almost reaching a point where they will have no one to purchase the properties.
As the hammer continues falling, big names in the country are not spared either. Many have lost their properties while others go to court to stop the auctions. Some of the big names that have had their properties being advertised or have already been auctioned include:
- Bishop Silas Yego
Purple Royal Auctioneers is set to auction Bishop Silas Yego’s property at a value of Ksh. 200 million. In a bid to save his fifty apartment unit in Kileleshwa from being auctioned, Bishop Yego (a close ally to Kenya’s second president) went to court but unfortunately, the case was dismissed.
Through his company, Siro investments, the bishop Yego borrowed Ksh. 140 million Transnational Bank back in 2014 when the bank was linked to former President Daniel Moi. The bank, now under Access Bank from Nigeria shows no mercy to the retired bishop.
- Atul Shah
The former Nakumatt CEO's case is unique judging by the amount owned. According to sources, Atul Shah offered his Lavington house as security for a certain loan to Nakumatt. According to sources, offered some of his properties as collateral
The loan taken from KCB back in 2011, has since been adding up and by the time Nakumatt went bankrupt, the debt was at Ksh. 30 billion.
His house in Lavington was auctioned through Leakey Auctioneers early this year. One of his properties in Industrial area was also sold earlier by KCB
In April last year media personality Jeff Koinange almost lost his two villas in Kitisuru after NCBA bank was set to auction his property through Garam Investment. But a last-minute deal between the bank and Koinange saved his properties.
What will happen when banks and other lenders fail to recover their loans if the properties do not sell?
The government can intervene and salvage the situation by liaising with the lenders to revise payment plans or even give extensions for the repayment of loans.
Most defaulters have been repaying their loans but with the Covid-19 pandemic, businesses are disrupted, jobs are lost and others are faced with salary cuts and with the third wave and the current lockdown, things may get worse.