Rédaction Africa Links 24 with Kenyans.co.ke
Published on 2024-03-22 16:36:30
Several tycoons in Kenya are facing the risk of losing their multimillion homes as financial institutions and banks take steps to recover their loans. A recent analysis by Kenyans.co.ke revealed that homeowners in Nairobi satellite towns, particularly Kitengela, were among those targeted in the auction exercise.
In Kitengela, 11 maisonettes and several residential and commercial buildings were listed for auction on March 18 alone. One notable property that was put on auction was a five-storey residential building estimated to generate a rental income of Ksh762,000 per month. The building comprises shop spaces on the ground floor and dwelling units on the upper floors, totaling 82 units once completed.
Apart from Kitengela, other satellite towns like Machakos County were also affected by the wave of auctions, mainly involving houses and land. For instance, a storey building hosting 40 commercial shops in Athi River was also listed for auction.
In Nairobi, estates like Kilimani and Kileleshwa saw houses being listed for auctions as well. The increase in loan defaults was attributed to the economic hardships experienced by many Kenyans, according to a survey by the Central Bank of Kenya. Personal and household credit facilities were identified as leading causes of non-performing loans, with bank CEOs predicting an increase in defaults in the first quarter of 2024.
The survey revealed that 54% of bank chief executive officers expected the rate of defaults to rise in various sectors, including Personal Household and Trade. Banks were set to intensify credit recovery efforts in eight economic sectors to improve the overall quality of their asset portfolio.
The auctioning of properties highlights the challenges faced by property owners who are unable to meet their loan obligations. It also underscores the impact of economic hardships on individuals and businesses in Kenya, leading to a rise in loan defaults and the subsequent auctioning of properties.
As financial institutions continue to recover their loans, it is crucial for property owners to seek alternative solutions to avoid losing their valuable assets. Seeking financial advice, restructuring loans, and exploring debt consolidation options are some ways individuals can address their financial challenges and prevent the loss of their homes and properties in the future.
Read the original article on Kenyans.co.ke
