Nairobi’s suburbs are experiencing a notable drop in rental prices, as well as house sale prices, according to a recent report by HassConsult released on Tuesday, July 30. Upper Hill and Muthaiga have been identified as the most affected areas, with tough economic conditions cited as the primary cause for this negative trend.
For the second quarter of 2024, Nairobi’s suburbs and satellite towns recorded only a marginal increase of 0.01% in rent prices, reflecting a shrinking demand for rental properties in suburb areas. In contrast, satellite towns showed stronger performance, with an average rent price increase of 2.1%, compared to a 0.9% decrease in the suburbs.
“This rise in satellite towns can be attributed to accelerated urbanisation, which has bolstered demand and driven up asking prices,” the report noted.
HassConsult attributed the declining rent rates in suburban areas to the growing cost of credit. Property owners are increasingly cautious about raising rents in an effort to retain tenants, as higher taxes and inflation continue to squeeze disposable incomes.
Upper Hill has seen the steepest decline in rental growth, with apartment rental prices dropping by 4.3% over the last quarter. Muthaiga, on the other hand, recorded the lowest annual rental price increase, with a 4.3% decline over the past year.
The downturn in Upper Hill extends beyond rental prices, as house sale prices in the area also saw a significant drop. Apartments in Upper Hill registered a 3.9% decrease in sale prices over the last quarter and an 8.3% decline annually.
Sakina Hassanali, Head of Development, Consulting, and Research at HassConsult, explained that while higher mortgage interest rates don’t significantly impact overall property price movements due to low mortgage participation in Kenya, they do reduce market liquidity, leading to a dampening of demand.
Imagine a landlord using a strange trick to make sure tenants pay their rent arrears. It sounds unusual, but for one tenant, this became a real problem. Here’s what happened: the landlord locked the tenant’s door with a padlock, but not in the usual way. The lock was just hanging there, so the door didn’t close properly and stayed open. This left the tenant’s home exposed and vulnerable.
The tenant had already paid a deposit, which she usually meant to cover damages or unpaid rent. “Even though the deposit was paid, the landlord continued to lock the door in this odd manner”. This not only made it difficult for the tenant to secure their home but also led to frustration and confusion about what to do next.
Using such an unusual method raises questions about what is fair and legal. Landlords have the right to deal with unpaid rent, but they must do so in a way that follows the law and respects tenants’ rights.
It’s important for both tenants and landlords to follow the right steps when dealing with rent.
As a tenant, to avoid problems with your landlord, it’s important to pay your rent on time. Keeping up with payments helps prevent conflicts and avoids stress. If you’re late with payments, your landlord might take unusual steps to get the rent. Always keep records of your rent payments, including receipts, so you can prove you’ve paid if issues come up. If you’re having trouble paying, let your landlord know as soon as possible. They might be willing to work out a payment plan to help you manage.
Landlords should stick to legal methods when dealing with unpaid rent. This usually means giving the right notice and following specific rules. Landlords must also treat tenants fairly and respectfully. Using unusual methods to get rent can be seen as harassment and may be against the law. It’s better to handle rent problems through official channels and keep communication professional. This approach helps keep things fair and ensures that actions are legal.
Residents of Nairobi County who have purchased or rented apartments from developers will soon have to pay sectional rates in addition to value capture.
Charles Kerich, a member of the County Executive Committee (CECM), disclosed this in an interview with Spice FM on Monday, May 23.
Developers have been paying the same prices for apartments as for undeveloped land, which is why Kerich believes value capture is crucial.
According to the CECM, value capture would guarantee equitable land charges and broaden the county’s revenue source.
He clarified the unfairness of the current land charges by saying, “Let us take, for example, that you have one acre in Upper Hill; on that one acre stands a tower with 50 stories paying the same as that one-acre next door that has nothing.”
Kerich said that because they were using water and sewage services in addition to a road network, everyone in that building had to pay rates based on the floor they occupied.
“Even though you won’t divide this one acre, you can capture the value of each floor so that each owner pays rates in addition to their share,” he clarified.
Speaking of sectional property, Kerich disclosed that the county was now working to completely implement the Sectional Property Act in order to prevent a small number of people from bearing the entire cost of land rates on subdivided properties.
He clarified the currently being phased out approach by saying, “What happens is that if you are on one acre and you have 60 apartments, the rates charged on that land are undeveloped site value, meaning you are charged as if there is nothing on that property.”
“Let’s say you have 60 apartments and you need to pay Ksh60,000. You can allocate and say everyone pays Ksh1,000, but a lot of people will end up footing the bill for the people who don’t want to pay.”
In order to prevent the developer from receiving payment in one single sum, the Act will now grant each apartment owner complete ownership of their unit.
The CECM clarified that everyone would have their own title and pay their own rates to sectional property, which would protect them from being impacted by the defaults of their neighbours.
He declared that the ability to take out loans against the property without having to deal with the developer was a win for Kenyans purchasing or renting apartments.
President of Kenya Uhuru Kenyatta launched the National Land Information Management System (NLIMS) commonly called Ardhisasa to digitize all the land records in the country and establish the land management system. The exercise began in earnest in 2013 and is aimed at bringing efficiency and transparency in the sector of land in Kenya. Digitization is a blessing because it is faster and more flexible, convenient, saves money wasted on managing the paper records.
The digitization initiative is to improve service delivery and enhance ease of doing business by addressing various challenges in the land sector. This include inconsistency on land records and ownership documents, increased land disputes due to the opaque nature of keeping land records, increased cases of fraud, forgery and corruption, lengthy and indeterminate transactions turnaround time among other challenges.
The digitization is meant to facilitate the following applications online;
To access the services offered on the Platform, one must hold an account with Ardhisasa. The system provides for the registration of three types of accounts;
1. Individual Registration: To register an individual account, one is required to submit the following in the Platform;
a. National Identification Card Serial Number and the ID Number,
b. Current email address,
c. Passport-sized photo (with white background), and
d. Current personal phone number.
2. Professional User Registration:
The individual user account provides a separate interface that enables professionals such as Advocates, Registered Physical Planners, and Registered Quantity Surveyors to upgrade their account to a professional user account. To register a professional user account, one must;
a) be registered as an individual user,
b) be a member of good standing to the relevant professional body that governs his/her profession and;
Companies are required to register company accounts. To register a Company account, one should have the following;
a. Company’s Company registration number,
b. Current official company mobile number (registered using one of the director’s ID number),
c. Current company email address, and
d. Passport-sized photo(s) of the directors (with white background).
Land digitization provides long-term preservation of records of paper records and it allows sharing knowledge within and across the land. The transition from the first registration regime to the current one and finally to the digitization of records has led to increased efficiency in conducting business and improved accountability mechanisms. More is still being done to ensure the digitization process is a success.
Challenges that implementation of Ardhisasa may face.
Torn and missing records.
Due to the quality of the records, in most cases, the records are misplaced or destroyed. With this, it may be difficult to retrieve and update the same in the system. Moreover, some records are too old. The peppers are tattered not legible or missing posing difficulties in the entire digitization process. Owners are then forced to apply for the reconstruction of their files which is time-consuming.
Hostile working environment.
The process of digitization may be challenged if the people at the registries are not supportive. This lack of support may stem from the fear that if the digitization process succeeds, they will lose their jobs. Change management needs to be handled well.
Duplicity.
In the initial period, land owners may have to work manually and in the system. This is tiring and takes a lot of time and is even costly. The payments of rents and rates are as well required to be done through checking the online system for the figures then manual payments.
Merits of Digitization.
Saves Money
Managing physical documents are costly and this makes one spends a lot of recourses or recurring records management versus the one times cost of digitization that could reduce overhead in the coming days.
Employers spend a lot of time locating records, sorting and exporting images or texts. That compared to what an employee earns per hour will helps lay bare the true cost of maintaining physical records.
Increase efficiency
Dealing with physical documents slows down the turnaround time. By choosing digital solutions the retrieval process at the registry will be faster.
Currently, we can rejoice that the process is underway. It is advisable for proprietors, to take the initiative of registering to the Platform and confirming their records.
The real estate agency in Kenya is governed by four statutory provisions. The main statutory is the Constitution of Kenya 2010. The other three include Estate Agents Act Chapter 533, the Rent restriction act chapter 296, and the land act 2012. Below, we are going to discuss each and how it affects Estate agents.
1.The constitution of Kenya 2010.
All authority and power flow from the Kenyan constitution 2010, as it is the supreme law in the land.
The constitution protects consumers with rights on how goods and services should be offered to them under article 46.
The agent/ landlord must send a form of termination notice duly signed and showing the end date of the tenancy.
Reasons and details for terminating the tenancy must be stipulated and also show which specific unit that applies to.
The landlord should apply to the tribunal for, an order for the termination of the tenancy and eviction of the tenant. That is if the tenant fails to vacate by the end date of the tenancy.
An increment in rent and the creation of a new tenancy cannot be done unless both the landlord and the tenant agree to it.
A landlord and tenant tribunal is the only one that can evict a tenant legally after determining the accuracy and justifiability of the reasons given.
2.Estate Agents Act Chapter 533.
This act was amended in the year 2012 after being enacted long ago.
The act provides that people, who negotiate for others, act to sell, purchase or let land and buildings as a form of business, be registered. For this purpose, a board (Estate Agents Registration Board) was established.
The board would also ensure that real estate agents are competent enough to protect the public.
Alternative marketing strategies for real estate usually have the potential for lead generation. When marketing your real estate business, it’s important to diversify your marketing strategies.
Indeed, most investors focus on real estate websites and social media where they advertise their listings. However, it’s important to follow a blueprint of proven means to generate leads. You can read our other marketing blogs to help set up your real estate business.
2 Alternative Marketing Strategies in Kenya
Automated Email Marketing
Before email marketing, there was physical mail that companies would send to their targeted audience. The companies would send individual messages to leads at their physical address. It was so direct that the recipient would receive the mail from their postal address.
However, the cost of sending those mails is very expensive, especially for small real estate investors.
Technology has advanced, and it’s easy to send thousands of emails within a few minutes. Most people who do online marketing forget the power of email marketing campaigns. As a result, they focus more on listing on websites and social media platforms, which many investors are already using.
With an automated email marketing strategy, you can create different categories of target clients and divide them into their specific locations. In addition, you can go further and classify them into the three buyer stages.
The good thing about this alternative marketing strategy for real estate in Kenya is that you can create automation for new subscribers in your list. Since the new subscribers are in the awareness stage, you won’t send them messages for those in the decision stage.
Automated email marketing also allows you to send mail to different groups of clients within their time zones. As a result, you’ll be sure to target the right clients at the right time.
This marketing strategy can help you in lead generation for your real estate business in Kenya.
Distribution of Brochures and business cards
Although this marketing strategy might be tiring, it usually bears positive results. To succeed with this alternative marketing strategy in Kenya, you first invest in printing out brochures and business cards.
This method may seem to be a wasted effort at first, but you’ll start getting leads in the long run. However, you have to attend seminars, regardless of the seminar type, and auction halls to distribute the cards.
Always ensure that the cards have your name and contact. While the brochures should have clear images of your properties and their locations. Again, don’t forget to include your contact information.
Indeed, distributing these leaflets can see you get your next client. However, be patient because not all cards you distribute mean you have a potential lead. Some people forget about the cards and maybe dump them knowingly or unknowingly. However, persistence is the key, and you will eventually have your clients.
The benefits of alternative marketing strategies for real estate
Increased reach
By using alternative marketing strategies, you can reach a much wider audience when you use them together with the commonly used ones. Alternative marketing strategies use online and offline channels to reach potential buyers.
Cost-effective
Alternative marketing strategies are often more cost-effective than the commonly used marketing strategies for real estate. With alternative marketing methods, you can tailor your marketing campaigns to target specific audiences, saving you money in the long run.
Time-saving
With an automated email marketing strategy, you can save a lot of time and automate many of the messages. Therefore, you can spend more time working on other aspects to improve your income property business.
Flexible
Alternative marketing strategies are very flexible, so you can tailor them to suit your specific needs. For instance, you can write different messages to different groups of audiences with email marketing. However, with social media, you cannot filter who can not see your advertisement.
Challenges of Marketing Strategies for Real Estate in Kenya
The lack of an efficient and centralised system for marketing and listing properties. This makes it difficult for potential buyers to find the right property and for real estate agents to market their properties effectively.
High cost of advertising. Traditional advertising methods, such as newspapers and television, are very expensive. The budget is often beyond the reach of small and medium-sized real estate businesses, which makes it difficult for them to reach a wide audience.
In addition, don’t forget to incorporate other means in your real estate marketing. Remember, the main goal is lead generation. Therefore, read more of our marketing topics to help you build your real estate business in Kenya.
Frequently Asked Questions
How can I market my real estate business in Kenya?
The best way to reach more people is by using every marketing strategy that produces results. The more aggressive your marketing is, the more you’ll generate leads.
How can I excel in the real estate business?
Apart from choosing the right location with high demand, you should also get involved in community issues. Always show up or send someone to represent you in public gatherings. In addition, try as much as possible to help people with the right information, and soon you’ll gain a following, possibly potential clients.
Can content marketing help me build a real estate business?
You can gain a huge following due to helpful content if you do it well. In addition, you should have the knowledge to convert your audience into leads and buyers.
The Kenyan real estate sector has been experiencing fast-paced growth in recent years, with various new technologies being adopted to keep up with the demand. As a real estate investor, you should pay attention to technology in your business.
Some of the most popular trends in the industry include drones for surveying land and 3D printing for construction purposes. Additionally, many developers are now using virtual reality (VR) to give potential buyers a realistic view of the properties. These trends will continue in the coming years as the Kenyan real estate sector looks to stay ahead of the curve.
This blog explains the technology trends in the real estate market in Kenya. Keep reading to learn what you should add to your property business.
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Major Real Estate Technology Trends in Kenya
1. Use of drones for video shooting
Using drones for surveying and mapping is becoming increasingly popular in Kenya. Drones can quickly cover much ground and take high-quality photos and videos, creating more accurate maps. This technology is helping to make the surveying and mapping process more efficient and precise.
In addition, if you need to take high-quality videos and photos for marketing, using drones can help you greatly. Video marketing is on the rise, and it’s high time you incorporate it into your real estate business.
2. 3D for construction
3D printing for construction is also becoming more popular in Kenya. 3D printing can create prototypes of buildings, homes, and other structures. This technology helps speed up the construction process and helps to create unique and custom designs.
You should search for a contractor who uses 3D printing tools in their processes. Never ignore technology because it makes work easier and more accurate with the help of robots.
3. Online Marketing Tools
People are now popular on online sites like social media, Websites, and Emails. That’s why you should focus on taking your products and services to where buyers are. Consider virtual reality in doing house tours for your audience to see the property’s interior and exterior.
These are the most popular technology marketing tools for the real estate business.
The use of virtual reality for marketing is also increasing in popularity. You can use virtual reality to create realistic simulations of properties that potential buyers can explore. This technology can help to give buyers a better idea of what a property looks like and can help to increase interest in a property.
Social Media
Social media has become an important part of our lives, and the real estate industry is no exception. In Kenya, social media significantly influences how people buy and sell their properties.
Kenya’s most popular social media platforms are Facebook, Twitter, and Instagram. Sellers and buyers use these platforms for advertising/buying properties, finding potential buyers or sellers, and negotiating deals.
Many real estate agents in Kenya are now using social media to market properties and reach potential buyers. Some agents are using social media to conduct viewings and open houses.
The use of social media in the real estate industry is still in its early stages, but it is clear that it is here to stay. Social media is making it easier for buyers and sellers to connect and making buying and selling a property more efficient.
Websites
The Internet has become an essential tool in real estate, with more and more people using it to search for properties and contact agents. A well-designed real estate website can help you attract and convert leads, a vital part of your marketing strategy.
Ensure your website is responsive, meaning it should look good and be easy to use on any device. In addition, your website should be a reflection of your brand. Use your branding elements, such as your logo, colours, and fonts, to create a consistent look in all your marketing tools.
Email Marketing
In your website and social media accounts, remember to include sign-up forms for your visitors. There are many free and paid email marketing tools you can use. Once you build a list, ensure you send your list informational content and updates on new properties available for sale.
However, don’t always appear to market your products and services. You should often send your audience helpful, trending content that affects the real estate sector.
Challenges for Real Estate Technology Adoption in Kenya
The Kenyan real estate sector has slowly adopted new technology trends in recent years. The challenges for technology adoption include the following.
The high cost of new technology
Lack of awareness of new technology trends
The reluctance of developers to change traditional business methods
Conclusion
The real estate industry is also changing as the world becomes increasingly digitised. We are trending towards more online and mobile services and sustainable green buildings in Kenya. This aligns with global trends, and we expect to see even more change in the coming years.
To know the current technology trends for real estate, subscribe, and we will always share valuable trends you would not find elsewhere.
Frequently Asked Questions
1. How is technology affecting the real estate sector?
The introduction of online marketing tools is shaping the marketing for real estate businesses. Most real estate agents close deals via online platforms like social media and websites.
2. What new technology trend is affecting the real estate market?
The introduction of Artificial Intelligence (AI) is helping investors to track real-time analytics of their marketing messages on websites and social media.
3. How has technology helped the real estate industry?
It’s now cheap to advertise a property on social media at a low cost compared to TVs and Radio advertisements. In addition, buyers can get full details of a property before they can decide to purchase.
A three-bedroom fully furnished house constructed in honor of World Marathon record holder Kelvin Kiptum. This remarkable achievement not only signifies the power of persistence but also highlights the seamless integration of modern construction techniques. The 3-bedroom house was built in six days following an order by President William Ruto. The house is situated on a four-acre Naiberi farm in Uasin Gishu, approximately 20 kilometers from Eldoret town.
Vaghjiyani Enterprises Limited, a reputable construction firm, was entrusted with the task of bringing this vision to life. The construction process used a cutting-edge combination of precast concrete and light gauge steel, showcasing a departure from traditional brick-and-mortar methods. This modern technology not only accelerates the construction timeline but also proves to be a cost-effective alternative.
The utilization of precast concrete wall panels played a pivotal role in the project’s success. Known for their efficiency and durability, these panels offer a swift and economical alternative to traditional walling systems. Moreover, this approach minimizes the need for extensive labor, underscoring the efficiency and speed with which the house was completed.
The construction of the house was completed in an astonishingly short span of six days, a testament to the proficiency of the chosen construction techniques. The accelerated pace not only meets the demands of a rapidly evolving world but also echoes the spirit of determination and purpose encapsulated in the project.
One distinctive feature of this house is that it is fully furnished, offering a turnkey solution for Kelvin Kiptum and his family. The interior design and furnishings reflect a harmonious blend of style and functionality. Every corner exudes an air of sophistication, turning the house into a comfortable and aesthetically pleasing home.
Situated on Kelvin Kiptum’s Naiberi farm, the house enjoys a serene environment, away from the hustle and bustle of Eldoret town. This location not only provides a tranquil setting but also pays homage to the achievements of the esteemed marathon runner. It stands as a symbol of recognition and appreciation for Kiptum’s dedication to his craft.
The men’s marathon world record holder, Kenya’s Kelvin Kiptum, 24, died in a road accident .He was killed alongside his coach, Rwanda’s Gervais Hakizimana, in a car on a road in western Kenya on Sunday.
Kiptum made a breakthrough in 2023 as a rival to compatriot Eliud Kipchoge – one of the greatest marathon runners. Kiptum bettered Kipchoge’s record, clocking the 26.2 miles (42km) in two hours and 35 seconds in Chicago last October.
As of January 1, 2023, the capital gains tax (CGT) rate has risen from five percent to 15 percent, as stipulated by the Finance Act, 2022. It is now opportune to evaluate the broader impact of the augmented CGT on profits generated from the sale or transfer of assets, encompassing land and shares. The responsibility for CGT payment emerges at the time of a property sale, and the obligation to pay lies with the individual initiating the transfer or sale.
In 1985, the government took a significant step to stimulate economic growth, particularly in the real estate and capital markets, by temporarily halting the implementation of capital gains tax (CGT). Since that decision, the real estate market has played a substantial role in boosting Kenya’s GDP. The suspension of CGT played a crucial role in this success, as it incentivized both local and international investors to engage in the sector, leading to a notable expansion in the real estate market.
As government spending rose, capital gains tax (CGT) was reinstated. In accordance with the Finance Act of 2014, the government reintroduced CGT, effective from January 1, 2015, with a five percent rate. This reintroduction aimed to expand the tax base and bring Kenya in line with neighbouring countries that had already implemented similar taxes.
The anticipation was that a rise in CGT would have adverse effects on the property market. Prior to its enactment, there were concerns that a significant increase in CGT would lead to a decrease in property sales. To address these concerns, industry experts and analysts recommended that the government consider reducing the tax rate to 10 percent.
As of the first quarter of 2023, revenue statistics from the Treasury indicated that tax revenues generated from real estate and private share transactions totalled Sh3.28 billion. This represented a 12.92 percent decline from the Sh3.76 billion recorded during a comparable period in 2022.
Nevertheless, in spite of the heightened CGT, the real estate market has sustained its prosperity due to ongoing demand for housing, retail spaces, and land. In the third quarter of 2023, the real estate sector experienced a growth of 6.2 percent, surpassing the four percent improvement recorded in the same period of 2022, as reported by the Kenya National Bureau of Statistics.
It appears that CGT might not pose the most significant challenge to the real estate market. The decrease in tax collections from overall property transactions could be attributed to the rising cost of living, which has substantially limited the disposable income of many Kenyans.
The economic challenges reflect a global pattern, as countries across the world grapple with uncertainties arising from the aftermath of the Covid-19 pandemic, international conflicts, and political instabilities.
Another issue is the absence of provisions for inflation adjustment in the law. Inclusion of inflation adjustment, also referred to as indexation, would enable property sellers to align the cost of their property with current prices, taking into account the prevailing inflation rate.
This is essential to safeguard investors from the impacts of elevated inflation rates.
Despite this, the real estate market in Kenya continues to thrive. It is noteworthy that Kenya maintains a comparatively lower CGT rate when compared to other neighboring countries. Uganda imposes a 30 percent rate as part of business income, Zimbabwe enforces a 20 percent rate, while South Africa applies rates of 18 percent for individuals and 21.6 percent for companies.
Furthermore, Kenya’s role as a significant economic center and it’s standing as one of the fastest-growing economies in Africa boost investor confidence.
Drawing definitive conclusions about the specific impacts of the CGT increase on the property market is premature at this point. However, it is crucial for the government and other stakeholders to monitor revenue collections and overall economic growth.
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.
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.
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.
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.
