A 64.3 percent debt service-to-revenue ratio casts a shadow over Kenya, a country where hopes for commerce are brightly shining. This was reported by BusinessDay.
High taxes, unfavourable government regulations, and skyrocketing inflation rates have caused many businesses to encounter serious difficulties and leave their owners with large debts.
Many business owners find it challenging to manage and expand their companies, and a number of problems have led to Kenyan companies failing. Here is a list of Kenyan billionaire whose properties were auctioned over debt.
- Atul Shah
Atul Shah, the former CEO of Nakumatt, had his Lavington home taken over by auctioneers due to a KSh 2 billion (USD 12.31 million) debt linked to the collapsed retail chain. In an attempt to recover the unpaid loan, the bank engaged Phillips International Auctioneers to sell his lavish four-bedroom villa, along with a servant’s quarter.
Originally offered as collateral in 2011 for a KSh 25 million (USD 153,000) loan, this property played a role in the considerable loans acquired by the now-defunct retail giant. The auctioneers successfully found a buyer who purchased the residence for KSh 30 million (USD 184,000). According to court records, a different property owned by Atul in Nairobi’s Industrial Area was previously auctioned by Kenya Commercial Bank (KCB) for KSh 1.04 billion (USD 6.4 million), with Furniture Palace International Ltd. emerging as the buyer.
- Ali Punjani
Mombasa businessman Ali Punjani lost ownership of his luxurious Nyali residence after failing to settle a substantial debt of KSh 17 billion (equivalent to USD 104.93 million) owed to the National Bank of Kenya, inclusive of interest and penalties. The opulent house boasts eight bedrooms with attached bathrooms, a servant’s quarters, and a swimming pool. The auction for this extravagant property, located on a 0.4-acre plot, was managed by Graham Investments.
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- Thuo Mathenge
Thuo Mathenge, a former candidate for the Nyeri gubernatorial position, encountered financial difficulties as his chicken farm faced auction by Valley Auctioneers. The purpose of this auction was to recover a debt of KSh 30 million (equivalent to USD 185,000) owed to Jamii Bora Bank. Mathenge took the matter to court, claiming that the auctioneers had undervalued his property, contending that its true worth was KSh 70 million (USD 432,000
- Paul Wanderi Ndung’u
Graham Investments Auctioneers recently targeted the former-chairman of SportPesa, Paul Wanderi Ndung’u, in their latest proceedings. The high-profile Kenyan billionaire’s valuable assets were scheduled for auction between March 21 and 24, 2023. As outlined in a public auction notice, Graham Investments Auctioneers explicitly mentioned that they are carrying out the directive received from Ndung’u’s legal representatives.
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- Buzeki
Bundotich Zedekiah Kiprop, commonly known as Buzeki, rose to prominence in the 2017 General Election when he vied for the Uasin Gishu gubernatorial seat. Buzeki Enterprises encountered financial challenges with a debt amounting to KSh 2.7 billion (equivalent to USD 16.66 million) owed to NCBA Bank. The loan was originally intended for the acquisition of 289 trucks and 141 trailers, but Buzeki was unable to fully repay the entire amount. However, in February 2022, he successfully reached a settlement agreement with the lender.
- Manu Chandaria
In June 2021, the distinguished billionaire Manu Chandaria faced the forfeiture of his manufacturing company, Kaluworks Ltd, to NCBA owing to a debt totalling KSh 6.6 billion (USD 40.73 million). On May 27, 2021, the company was placed under receivership. Nonetheless, in August 2022, Chandaria regained ownership of the firm after local banks chose to pardon its loan, recognizing their incapacity to revive the company.
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