119 Kenya Commercial Bank (KCB) customers who have defaulted on their loans are set to lose their vehicles this week.
The vehicles were offered as collateral for loans from KCB which the borrowers were unable to repay.
KCB has put up the vehicles for sale at an average price of Sh2.5 Million each.
The sale will be closed on Wednesday with the auctions expected to fetch the bank over Sh304.4 Million.
Nearly all the vehicles being auctioned by KCB are trucks, tippers and prime movers.
Some of the defaulters, who have in the past relied on fresh bank credit to repay old debt, have blamed their circumstances on the inability to get new loans in the wake of interest rate controls.
The lender has also sought to recover billions of shillings owed by big names including collapsed construction firm Spencon and the estate of the late tycoon Tahir Sheikh Said (TSS).
According to the Central Bank of Kenya (CBK), gross defaults in the banking sector rose to 45.5 per cent in the year ended December.
Other lenders including the NIC Bank have in recent months auctioned hundreds of vehicles, parcels of land and buildings held by struggling businesses and individual borrowers.
