A new wave of auctions has hit Nairobi and its satellite towns as Kenyans continue to face tough economic times.
An analysis by Kenyans.co.ke on the auction advertisements published during the week established that Kitengela was the most affected among the satellite towns.
For instance, in Kitengela, five mansions were put on auction with most of the houses being either four or three-bedroom houses.
Additionally, a five-storey building that has residential apartments in Kitengela, Kajiado county was also listed to be auctioned.
Other satellite towns that were affected include Ngong, Rongai and Ruaka. In most of the estates, the houses that were listed by the auctioneers were between two and four-bedroom houses.
Meanwhile, within the capital, apartments and residential properties within Kileleshwa and Kilimani were also listed for auctions.
On the other hand, commercial buildings will also be sold through the auctions.
For instance in Thika Town, a 7-storey building with an estimated monthly income of Ksh1.9 million is set to be auctioned.
"Erected on the plot is a multi-storeyed commercial cum residential building with a basement level. Both water and electricity are connected. Access is via a tar-surfaced road," read the auction advert in part.
Another commercial property within Moi Avenue within the Central Business District (CBD) will also be auctioned. The six-storey building is estimated to have a monthly income of Ksh1.5 million.
Other items that were listed for auctions are land parcels in Komarock (0.7 hectares), Kilimambogo in Kiambu County (48 acres) and Kajiado (1 acre).
Why the Auctions
The recent wave of auctions is attributed to the inability of Kenyans to meet their plan repayment obligations.
As highlighted in the Market Survey Report by the Central Bank of Kenya (CBK), the rise in non-performing loans was mostly attributed to salary delays for employees among others.
Banks and financial institutions are also expected to increase loan recovery plans, especially for personal and household loans.
"Respondents indicated that the level of NPLs is expected to remain constant in nine economic sectors and increase in Personal Household, and Trade sectors during the next quarter.
"For the quarter ended March 31, 2024, banks expect to intensify their credit recovery efforts in eight economic sectors and retain them in three sectors (Mining and Quarrying, Energy and Water, and Financial Services). The intensified recovery efforts are aimed at improving the overall quality of the asset portfolio," read the report in part.
