3,000 Families Face Eviction as Ksh1.8 Billion Ranch is Auctioned

Household goods left outside after a recent eviction in Kenya
Household goods left outside after a recent eviction in Kenya.
Amnesty International

3,000 Kenyans are staring at mass eviction after they received eviction notices from a ranch that is set for auction.

The residents were living inside Karuturi Flower farm in Naivasha, which is set to be auctioned by a local bank after failing to repay a loan valued at Ksh1.8 billion.

A source from the area confirmed to Kenyans.co.ke that the affected families have been given an ultimatum to vacate the land.

The auction process is expected to kick off in October 2021.

A flower farm at Karuturi, Naivasha during its fruitful days, before closure in 2014
A flower farm at Karuturi, Naivasha during its fruitful days, before closure in 2014
File

"It is true. The residents have been given an ultimatum of two months to vacate the land. They are no longer workers of the company because it has since collapsed.

"The bank had loaned Karuturi Ksh1.8 billion. When they were unable to settle the date, they were taken to court. The court allowed the bank to sell the whole farm," stated the source.

The bank was given a go-ahead to auction assets from the farm in July by the Supreme Court, which dismissed an appeal by the flower farm owners and guarantors.

Before the debacle, the farm was among the largest companies in the Kenyan horticulture industry.

The owners had opposed an order by the High Court, allowing the bank to carry out the auction. They argued that they had not been given an opportunity to challenge the audit report.

The High Court dismissed the argument on the basis that it was not presented at the High Court.

“However, having listened to all the parties in the matter and re-evaluated the pleadings before us, and the record of appeal... and considering our findings herein, we are satisfied that we lack the jurisdiction to entertain the matter before us,” ruled a five-judge bench, led by Deputy Chief Justice Philomena Mwilu. 

In its heydays, the farm produced as much as six million stems of follows per day, with a majority destined for export in European nations.

Woes began in 2014 after the company was placed under receivership, upon running into headwinds in the repayment of a loan owed to the bank.

Two years later, 2,600 people were shown the door after workers union failed to reach an agreement with the farm's runners at the time.

The decision affected over 2,000 students who were attending schools set up by the flower company.

The bank had been restrained from auctioning the firm for three years.

A deserted flower farm at Karuturi, Naivasha spotted on March 6, 2018.
A deserted flower farm at Karuturi, Naivasha spotted on March 6, 2018.
Daily Nation