Several tycoons are on the verge of losing their multimillion homes as financial institutions and banks move to recover their loans.
In an analysis by Kenyans.co.ke on various auction advertisements published in the newspapers during the week, homeowners within the Nairobi satellite towns were among those targeted in the exercise.
Specifically, those who had invested in building homes and commercial buildings within Kitengela were among the most affected groups.
For instance, on March 18 alone, 11 maisonettes in Kitengela were placed on auction in addition to residential and commercial buildings.
One of the residential buildings placed on auction was a five-storey residential building within Kitengela Town and is estimated to generate a rental income of Ksh762,000 per month
"The property comprises a 5-storey commercial cum residential block. The building houses shop spaces on the ground floor and dwelling units on the upper floors. The rental dwelling units are a mix of bedsitters, double rooms units and 1-bedroom units of various sizes.
"Upon completion, there will be a total of 82 units. The actual rent collected from the property is Ksh444,000. The approximate built-up area is 42,169 sq ft. When fully complete it is estimated to give a monthly rental income of Ksh762,000," read the auction advert in part.
On the other hand, other satellite towns which were affected by the new wave was Machakos County. However, in Machakos, most of the property put on auction were houses and land.
Notably, a storey building which hosts 40 commercial shops in Athi River was among those listed for auction
Here in Nairobi, some of the estates where houses were listed for auctions include KIilimani and Kileleshwa.
Loan Defaults
According to a survey done by the Central Bank of Kenya among banks in December 2023, loan defaults were attributed to the economic hardships that many Kenyans are experiencing.
Personal/household credit facilities were among the leading non-performing loans.
Notably, 54 per cent of the bank Chief Executive Officers (CEOs) noted that the rate of defaults would increase in the first quarter of 2024.
"Respondents indicated that the level of NPLs is expected to remain constant in nine economic sectors and increase in Personal Household, and Trade sectors during the next quarter.
"For the quarter ended March 31, 2024, banks expect to intensify their credit recovery efforts in eight economic sectors and retain them in three sectors (Mining and Quarrying, Energy and Water, and Financial Services). The intensified recovery efforts are aimed at improving the overall quality of the asset portfolio," read the report in part.
