In Kenya, where dreams of commerce brightly shine, a shadow looms with a debt service-to-revenue ratio of 64.3 percent as reported by BusinessDay,
Due to elevated taxation, adverse government policies, and soaring inflation rates, numerous companies have faced significant challenges, resulting in substantial debts for their owners
Many entrepreneurs find it difficult to navigate the route of operating and growing a firm, and various issues have contributed to the failure of businesses in Kenya.
According to Tuko, here are Kenyan billionaires, whose properties were auctioned over debt.
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Atul Shah
Atul Shah, the former CEO of Nakumatt, lost ownership of his Lavington residence to auctioneers due to a KSh 2 billion (USD 12.31 million) debt incurred for the collapsed retail chain. In efforts to recover the defaulted loan, the bank enlisted Phillips International Auctioneers to sell his luxurious four-bedroom villa with a servant’s quarter.
Originally pledged as collateral in 2011 for a KSh 25 million (USD 153,000) loan, the property played a role in the extensive loans obtained by the retail giant. The auctioneers successfully secured a buyer who acquired the residence for KSh 30 million (USD 184,000 ). According to court records, a separate 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 purchaser.
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Ali Punjani
Mombasa tycoon Ali Punjani forfeited his opulent Nyali mansion due to a KSh 17 billion (USD 104.93 million) debt owed to the National Bank of Kenya, including accrued interests and penalties. The residence features eight en suite bedrooms, a servant’s quarters, and a swimming pool. Graham Investments conducted the auction for the lavish property, which is situated on a 0.4-acre parcel of land.
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Thuo Mathenge
Thuo Mathenge, a former aspirant for the Nyeri gubernatorial position, faced financial challenges as his poultry farm became the subject of auction by Valley Auctioneers. This action aimed to recoup a KSh 30 million (USD 185,000) debt owed to Jamii Bora Bank, as reported by Business Daily. Mathenge contested in court, asserting that the auctioneers had underestimated the value of his property, which he argued was worth KSh 70 million (USD 432,000).
Paul Wanderi Ndung’u
Graham Investments Auctioneers focused on the former SportPesa chairman Paul Wanderi Ndung’u in their recent actions. The prominent Kenyan billionaire’s valuable properties were set to go under the hammer between March 21 and 24, 2023. As indicated in a public auction notice, Garam Investments Auctioneers specified that they are executing the order received from Wanderi’s legal representatives.
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Buzeki
Bundotich Zedekiah Kiprop, known as Buzeki, gained prominence during the 2017 General Election when he contested the Uasin Gishu gubernatorial seat. Buzeki Enterprises found itself in financial trouble with a debt of KSh 2.7 billion (USD 16.66 million) owed to NCBA Bank. The loan was intended for the acquisition of 289 trucks and 141 trailers, but Buzeki couldn’t offset the entire loan. However, in February 2022, he successfully negotiated a settlement agreement with the lender.
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Manu Chandaria
In June 2021, the renowned billionaire Manu Chandaria experienced the loss of his manufacturing company, Kaluworks Ltd, to NCBA due to a debt amounting to KSh 6.6 billion (USD 40.73 million). On May 27, 2021, the company was placed under receivership. However, in August 2022, Chandaria regained control of the firm when local banks decided to forgive its loan, acknowledging their inability to revive the company.
