Kenya’s property market is feeling the sting of ongoing economic pressures, with auctioneers now seizing high-value assets, including properties, vehicles, and hotel furnishings. The wave of auctions is sweeping across various sectors, leaving even well-established businesses grappling with financial difficulties.
Garam Investments Auctioneers has revealed a staggering array of assets from the former Intercontinental Hotel in Nairobi, set for auction on 29th August 2024. The sale includes cold rooms, reception counters, fridges, chillers, exercise machines, and a host of other high-end hotel equipment. The hotel, once a symbol of luxury in the heart of Nairobi, has now become a testament to the country’s faltering economy.
The auction, instructed by Kenya Hotel Properties PLC, underscores the harsh realities of the current economic climate, which has not spared even the most resilient sectors. Bidders are required to make a refundable deposit of Ksh50,000 to participate, and they must settle their payments within 48 hours of a successful bid. The auction’s terms are strict, reflecting the urgency and gravity of the situation.
Adding to the growing list of distressed properties, Integra Auctioneering (K) Company has scheduled the auction of Osotua Luxury Resort in Naivasha, Nakuru County, on 10th September 2024.
The resort, a grand establishment with 30 studio apartments, villas, swimming pools, and other luxurious amenities, is on the chopping block.
The property’s sale, involving nearly 10 acres of land, highlights the widespread challenges in the hospitality sector, which has been battered by reduced tourism and rising operational costs.
The conditions for this sale are equally stringent, with a refundable deposit of Ksh5 million required to obtain a bid number. Successful bidders must pay 25 per cent of the purchase price immediately and the balance within 90 days, or risk losing their deposit. The auctioneer’s notice emphasises the importance of adhering to these terms, given the high stakes involved.
Not limited to hospitality, the real estate market in Kitengela, Kajiado County, is also under siege. Nguru Auctioneers has announced the auction of several vacant plots in Korrompoi and Enkasiti areas, scheduled for 23rd August 2024. These plots, situated in prime locations near key landmarks like the Maasai Ostrich Farm and Konza City, are yet another casualty of the economic downturn.
The auctioneer’s notice details the proximity of these properties to major roads and schools, making them desirable yet vulnerable assets in a market struggling to stay afloat.
The Ministry of Transport is also auctioning vehicles, including Toyota Corolla saloons, Nordic trailers, and a Toyota Prado VXL Saloon. The auction, expected to conclude today, requires bidders to submit refundable deposits ranging from Ksh20,000 to Ksh250,000, depending on the vehicle.
The vehicles are being sold on an "as is, where is" basis, a stark reminder of the stringent terms imposed in today’s volatile market.
These auctions are not just routine sales but a reflection of the broader economic challenges facing Kenya. High inflation, rising interest rates, and a depreciating shilling have left many businesses and individuals unable to service their debts, forcing them to liquidate assets at a loss.
