Athi River: Tenants In Limbo As KCB Auctions 78 Houses At Greatwall Apartments Over Developer Loan

• Kenya Commercial Bank (KCB) advertised two-bedroom units for sale at Greatwall Apartments in Athi River through Garam Auctioneers
• Garam Auctioneers revealed the sale would be made on May 21 at its Westlands, Nairobi county offices, and now tenants face an uncertain future
• Martin Nyakundi O'Barimo, a law researcher, told TUKO.co.ke that KCB had the upper hand, but the tenants could still fight in court

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

The Kenya Commercial Bank (KCB) is set to auction 78 houses at Greatwall Apartments in Athi River after the developer failed to settle a KSh 1.9 billion loan.

The lender advertised the two-bedroom units for sale through Garam Auctioneers, and now tenants face an uncertain future.

Garam Auctioneers revealed the sale would be made on May 21 at its Westlands, Nairobi county offices.

"The units will be sold individually (gross area typically two-bedroom unit 94 square metres). The title is a leasehold interest," the notice read.

How tenants can salvage their houses

Martin Nyakundi O'Barimo, a law researcher and an advocate, told TUKO.co.ke that KCB had the upper hand, but the tenants could still fight back by moving to court.

"Despite the bank’s advantage, our courts strive to find an amicable solution under Article 159 of the Alternative Dispute Resolution. Discussions will be held on how the payment should be made. However, it is unlikely that our courts will turn a blind eye and allow people to be evicted from their homes without seeking a fair resolution," the law expert explained.

Nyakundi noted that the court may issue a warrant of arrest against the developer and order his assets to be sold to repay the loan.

"The court may examine other properties owned by the developer to determine how they can be liquidated to recoup the funds. The parties can approach the court, which will then facilitate an inter-party agreement. This agreement will outline a payment plan similar to the resolution reached in the case of the Kirima family and several other precedents," he added.

How KCB won the court case

KCB achieved victory after the Court of Appeal rejected temporary orders to halt the auction of Greatwall apartments.

Ederman Property Limited tried to stop the sale, claiming it was illegal and unprocedural.

However, the court dismissed Ederman's application, stating that there was no dispute over the property being charged to KCB and that the bank's right to exercise its statutory power of sale was valid.

Proofreading by Nyambura Guthua, journalist and copy editor at TUKO.co.ke