Broke Tycoons!;List of Kenyan Billionaires Whose Properties Were Auctioned Over Debt
Doing business in Kenya is not for the faint-hearted considering the high taxation.
The auctioneers’ hammer has fallen on multi-billion properties belonging to several billionaire businessmen over debts.
Even as others bounced back, there are those who went under. Kenyan tycoons who lost properties to auctioneers
1. Atul Shah
Former Nakumatt chief executive officer (CEO) Atul Shah lost his Lavington home to auctioneers over a KSh 2 billion debt he took for the collapsed retail chain.
As part of recouping the defaulted loan, the bank contracted Phillips International Auctioneers to sell his four-bedroom villa with a servant’s quarter.
The palatial home was used as collateral in 2011 for KSh 25 million, which forms part of the multi-billion shilling loans the retail giant took.
The auctioneers found a buyer who parted with KSh 30 million. Court records indicate that Atul’s property in Nairobi’s Industrial Area was auctioned earlier by Kenya Commercial Bank (KCB) at KSh 1.04 billion and bought by Furniture Palace International Ltd.
2. Ali Punjani
Mombasa tycoon Ali Punjani lost his luxurious mansion in Nyali over a KSh 17 billion debt that was owed to the National Bank of Kenya.
The debt included accrued interests and penalties. The home boasts eight en suite bedrooms, a servant’s quarters and a swimming pool.
According to Bizna Kenya, the luxurious mansion which sits on a 0.4-acre piece of land was auctioned by Graham Investments.
3. Thuo Mathenge
Former Nyeri gubernatorial aspirant Thuo Mathenge is another Kenyan businessman who had a bumpy ride.
Business Daily reported that his poultry farm was placed on the Valley Auctioneers’ hammer to recover a KSh 30 million debt owed to Jamii Bora Bank.
Mathenge told the court the auctioneers had undervalued his property which he claimed was worth KSh 70 million.
4. Paul Wanderi Ndung’u
Former SportPesa chairman Paul Wanderi Ndung’u was on the receiving end of Garam Investments Auctioneers.
The Kenyan billionaire’s prime properties are scheduled for auction between March 21 and 24, 2023.
In a public auction published in the local dailies, Garam Investments Auctioneers said they acting on the order given by Wander’s advocates.
In a public auction published in the local dailies, Garam Investments Auctioneers said they acting on the order given by Wander’s advocates.
5. Buzeki Bundotich
Zedekiah Kiprop popularly referred to as Buzeki rose to fame in the 2017 General Election when he vied for the Uasin Gishu gubernatorial seat.
Buzeki Enterprises owed NCBA Bank KSh 2.7 billion. The loan was reportedly used to purchase 289 trucks and 141 trailers but Buzeki defaulted.
In February 2022, he reached a deal with the lender.
6. Manu Chandaria
In June 2021, billionaire businessman Manu Chandaria lost his manufacturing firm, Kaluworks Ltd, to NCBA over a KSh 6.6 billion debt.
The company was placed under receivership on May 27, 2021. Chandaria got the firm back in August 2022 after local banks waived its loan after failing to revive the firm.
The firm’s shareholders agreed to pay KSh 1.2 billion to lift the receivership.
