Auctioneers have failed to secure a buyer for a palatial home belonging to former Nakumatt Chief Executive Officer, Atul Shah.
The home, located at Elite Gardens in Lavington, was put up for sale in July 2021 in order to settle a Ksh2 billion debt he owes to his former creditors.
A representative of the auctioneering company affirmed that they had rejected most bids since they had not met the target.
"The sale of Atul’s house did not happen last month although we received numerous enquiries. We attribute this to a general slowdown in the economy, especially in the real estate business,” the representative told the media.
"The amount we got was almost close to the sale value. This did not meet our targets, and we had to reject it. We plan to float the house again for auction soon but in consultation with the bank.”
The Lavington property is a four-bedroom villa with domestic servant quarters and a semi-permanent generator room.
Among the conditions set by the auctioneers include paying a Ksh1 million refundable fee in order to obtain a bidding number and catalogue before the auction date.
Further, the bidders ought to deposit 25 percent of the asking price through a banker's cheque.
“The balance will thereafter be payable within 90 days to the charges, failure to which the auction deposit will be forfeit,” the auctioneers initially stated.
Shah had acquired billions in loans from several commercial banks using his company, Cologne Investments, in a bid to save the Nakumatt from the financial crisis.
However, Nakumatt's sales dipped at an all-time low leading to various branches shutting down in a bid to cushion it from the biting cash crunch.
Later, Nakumatt and Cologne defaulted on the loan - which led to Justice Francis Tuiyott of the High Court, allowing Shah's property to be auctioned.
