Billionaire's Family Risk Losing Multi-Million Hotel

  • Jacaranda Hotel located in Westlands, Nairobi.
    Jacaranda Hotel located in Westlands, Nairobi.
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  • The family of the late billionaire Njenga Karume risks losing its multi-million Jacaranda Hotel to auctioneers over debt.

    A report by Daily Nation on Monday, February 15, indicated that the hotel is set to be auctioned on March 12 after defaulting on a Ksh250 million loan.

    The hotel, a 128-roomed facility, has been the subject of numerous legal battles between the family and the creditor, having survived an auction in January 2020.

    The publication indicated that the valuation of the property had already been done ahead of the auction event.

     The late Njenga Karume
    The late Njenga Karume during an event.

    It is reported that the hotel management took the loan and a further overdraft from a bank which is yet to be repaid.

    “All intending purchasers are requested to view and verify the details by themselves, a refundable deposit of Sh5,000,000 must be paid to obtain a bidding number,” read a notice by the auctioneers.

    The four-star facility in Nairobi contains ensuite rooms, satellite tv, and wireless internet connection. 

    The hotel's management has also had run-ins with the state with the latest being a Ksh95 million tax arrears demand from Kenya Revenue Authority.

    The bank had in June 2018 notified Jacaranda Hotel's management of an impending auction but was stalled after an assurance from Karume's family that a huge parcel of land owned by the ex-minister would be sold to clear the debt.

    Karume died in 2012 after battling cancer leaving behind an estate valued at Ksh40 billion.

    Besides Jacaranda, the family also owned Lake Elementatita Lodge in Nakuru and Indian Ocean Beach Resort.

    He also had stakes in Standard Chartered Bank and Wine Agencies Limited.

    Jacaranda Hotel located in Westlands, Nairobi.
    Jacaranda Hotel located in Westlands, Nairobi.
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