Kenyans have been warned to brave for tough times after property auction notices filled nine pages of the Daily Nation newspaper, Monday, March 29, edition.
The properties listed included multi-million mansions, high-rise apartments, motor vehicles and household items in Nairobi and across other parts of the country.
Speaking to Kenyans.co.ke, economist Sam Okumu warned that the economic situation in Kenya was poised to worsen in the coming months.
He further noted that there was a spike in the auction of people's properties because businesses were not realising as much profit as they used to before, thereby causing businesses and entrepreneurs to default on existing loans.
"The auction notices cast a lot of doubt on our financial markets. The demand and supply for money is always dictated by the value of the interest rates. We have other external factors like government policies.
"The worst is yet to come. Last year the government assumed that the tax reprieve would work, but businesses are still suffering. Right now, restrictions have come back without the tax reprieves. What do you expect this year, it means it will be worse," warned Okumu.
He further noted that the sharp increase in auction notices spelt doom on the financial markets most affected by the government policies.
"Right now we are seeing an interplay of a lot of government policy. Definitely, people are unable to make money.
"Interest is not at play here because we know last year the interventions were there. To see the auctions coming up even after the borrowers were given a break for the whole year, they were not able to make money," he added.
The auction notices in the paper rose sharply compared to the pre-Covid-19 pandemic period when the section barely filled the newspaper's spread.
The Standard newspaper for the same day saw a total of two pages covered in auction notices.
The state has warned that the current third-wave of the pandemic would hit its peak in April and spill over to May and is expected to affect the economy negatively.
So far, fuel prices have already hit a record high with various goods having hiked and a revised curfew beginning at 8 p.m. and ending at 4 a.m. affecting businesses.