Several affluent Nairobi residents with homes in posh estates and satellite towns are set to lose their multi-million houses, notices published by various auction companies show.
According to the different notices, the homes in question are located in Kileleshwa, Karen, and Fourways Estate in Kiambu County among other leafy suburbs.
In Karen, a four-bedroom mansion with a swimming pool has been put on auction. The estate which sits on 2.4 acres of land also has a servant's quarter.
On the other hand, a three-bedroom apartment with a kitchen pantry in Kileleshwa was put on sale. The unit's rent was pegged at Ksh120,000 per month.
In satellite towns, 13-storey houses in Gatanga area along Thika Super Highway were also put on auction.
"The plot measures 1.319 Hectares (3.259 Acres) approximately. The housing project comprises 13 townhouses of various designs and at different stages of construction.
"The title is a leasehold interest for a term of 99 years wf01.09.1953 at an annual revisable ground. Electricity and piped water supply are available for connection. Drainage will be into a septic tank and a soak away pit or bio-digester sewer system," read the notice in part.
Similarly, a two-storey villa in the posh Fourways Estate in Kiambu County is also being auctioned.
Across in Kajiado County, three houses were put on sale including a five-bedroom maisonette.
The other houses in Kajiado County listed for auction were a three-bedroom villa and a storey building residential apartment.
Business Property
Among commercial buildings set to be auctioned are two business complexes in Nairobi.
A five-storey commercial building in Eastleigh was put on sale. The building which features a hotel and lodging rooms was approximated to attract Ksh2.4 million in monthly rent.
On the other hand, a six-storey business centre in Ngara Estate is estimated to attract monthly rent of Ksh1 million and will be auctioned on November 30.
The new wave of auctions can be attributed to widespread loan defaults as Kenyans continue to struggle in a harsh economy.
According to the Kenya Financial Sector Stability Report, 2022, published by the Central Bank of Kenya (CBK) Non-Performing Loans (NPL) are projected to increase by the end of December based on trends witnessed for the better part of the year.
"NPL ratio rose from 13.3 per cent in December 2022 to 14.5 per cent by the end of June 2023 and 15.0 per cent by the end of August 2023. Overall, credit risk as reflected by NPLs, is expected to remain elevated up to the end of 2023," read the report in part.
The increase in loan defaults has been attributed to the state of the economy which has affected cash flows for many businesses.
Notably, in the CBK report released in October, banks were warned that big borrowers including tycoons would be among the biggest defaulters of the year.
"Most banks are vulnerable to up to three top borrowers defaulting per bank under severe scenarios, highlighting concentration risk to a few clients. Banks therefore need to ensure top borrowers are performing and devise strategies to manage any default before it develops into a systemic problem," read the report in part.
