15 Muthaiga, Loresho Homes on Auction as Loan Defaults Hit Tycoons

An aerial view of mansions in Lower Kabete and Kitisuru
An aerial view of mansions in Lower Kabete and Kitisuru.
Property in Kenya

Rising defaults amid a tough economic environment have set up Kenyans for property seizures and auctions including tycoons residing upmarket areas of Loresho, Muthaiga and Kitengela. 

In over 30 auction notices published in the Standard and Daily Nation newspapers on Tuesday, 15 homes owned by the rich in Nairobi's exclusive suburbs have been listed for the hammer after owners failed to service their loans. 

The homes are either three or four-bedroom family houses sitting on at least a quarter an acre. Homes and apartments in Lavington, Westlands, and Woodely are also listed for auction.  

The auction is an indication of the tough economic environment which has seen Kenyans unable to meet their loan obligations forcing banks to resort to asset seizures.

Auction adverts published in the Standard Newspaper on October 3, 2023.
Auction adverts published in the Standard Newspaper on October 3, 2023.

Satellite towns with mostly middle-class families such as Kitengela, Kiambu, and Machakos have also been hit by a series of auction, a further revelation of the economic turmoil facing millions of Kenyans.

Landlords have also not been spared. Among the auctions is a complete three-storey residential property which is estimated to generate Ksh927,000 monthly in rent.

"All interested purchasers are requested to view and verify the details for themselves as these are not warranted by the auctioneer or charge. The highest bidder so declared at the public auction sale shall be required to pay 25 per cent of the purchase money in cash or banker cheque and pay the balance within 60 days from the date of sale.

"The auctioneer has the right to reject any bid without giving any reasons for doing so. The sale shall be subject to reserve price and land control board consent," read one of the adverts in part.

While most of the auction targeted complete buildings, buildings under construction were also lined up to be auctioned.

Offices & Cars
A spot check by Kenyans.co.ke also revealed that a number of offices were put up for auction.

Some of the offices listed by the auctioneers were located within the CBD, Westlands and satellite towns such as Kiambu.

A number of Kenyans will also lose their cars to auctioneers after defaulting on their loans. Some of the vehicles that were listed for auction include canters and pickups.

As per the Credit Officer Survey released in June by the Central Bank of Kenya, it was projected for Non-performing loans (defaulted loans) to increase between July and September.

This is even after the rate of loan defaults rose by 54 per cent in the 2023 second quarter (April - June ) in comparison to the first quarter January to March.

Banks and other financial institutions also highlighted plants to intensify their credit recovery.

The main sectors that banks intend to intensify credit recovery efforts are Personal and Household (86 per cent), Trade (84 per cent), Manufacturing (78 per cent), Transport and Communication (76 per cent) and Real Estate (70 per cent).

Cars parked in Nairobi City.
Cars parked in Nairobi City.
Urban News