Wealthy Kenyans are set to lose 16 multi-million houses to auctioneers after the High Court ruled in favour of the latter on Wednesday, April 8.
Justice David Majanja in Civil Case E030 of 2020, gave a ruling allowing Housing Finance and Garam Investments Auctioneers to sell 16 houses at Zahara Gardens Apartments, Ngong Road, Nairobi, at Ksh 5.25 million each, to recover a Ksh 80 million loan.
A property developer who had sold the house to individuals including Josephine Mukuhi and Henry Ng'ang'a who had purchased two houses, suffered a blow when the court ruled for the auctioneers.
"The grant of an injunction would merely postpone the day of reckoning in view of the admitted indebtedness. During this time the interest would continue to accrue and increase substantially in proportion to the value of the security thus imperilling the lender’s prospects of recovery of the debt," Majanja ruled after the property developer admitted its indebtedness.
The developers constructed over 30 houses in 2013 and had a plan to sell them in the open market. It borrowed a loan of Ksh 80 million, to be repaid in instalments in over 24 months. They were, however, not capable to beat the deadline due to the economic downturn.
In another auction, Garam Investments Auctioneers announced the auction of a posh hotel in Ngara, Nairobi, 2 kilometres north of Nairobi Central Business District.
On Wednesday, April 8, through its website, the auctioneers detailed that Hotel Grace Villa along Limuru Road was up for sale for Ksh 112.5 million.
The plot extends to approximately 0.1074 Hectares (0.2653 Acres) and was developed with an Asian type house modified to a commercial block partly as a hotel or guest house.
The hotel encompasses shops, entrance lobby, butchery and kitchen with storage area, bar and conference halls and generates an income of nearly Ksh 1.2 million per month.
The auction will take place on Tuesday, April 28, 2020.
