![Kiambu Town Loan Defaults Trigger Mass Property Auctions Across Nairobi](/sites/default/files/styles/large/public/2024-06/image-1200x600%20-%202024-06-22T153542.267.jpg?itok=-ikhz7cy)
Kiambu Town
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Homeowners and investors are at risk of losing their properties as financial institutions and banks take assertive measures to recover loans.
This surge in auctions has particularly affected areas like Kitengela which has emerged as the focal point of this trend. In Kitengela, several mansions, primarily consisting of four or three-bedroom houses, have been put up for auction. A five-story residential building with apartments in Kajiado County is also among the properties listed for sale. The auction trend is not limited to Kitengela alone; other satellite towns such as Ngong, Rongai, and Ruaka have seen similar listings for houses ranging from two to four bedrooms.
The scope of these auctions extends beyond residential properties with commercial buildings also caught in this financial upheaval. A prime example is a seven-story building in Thika Town which reportedly generates a monthly income of Sh 1.9 million, now slated for auction. Furthermore, land parcels in various locations including Komarock, Kilimambogo in Kiambu County, and Kajiado, have also been put on the auction block.
The root cause of this auction surge is the increasing difficulty Kenyans face in meeting their loan repayment obligations. The Central Bank of Kenya's Market Survey Report has highlighted a significant rise in non-performing loans, attributing this partly to delays in salary payments for employees. Personal and household credit facilities constitute a substantial portion of these non-performing loans, reflecting the financial strain on individual borrowers as economic challenges persist.
In response to this situation, banks and financial institutions are planning to intensify their credit recovery efforts. Their strategy aims to improve the overall quality of their asset portfolios by addressing non-performing loans across various economic sectors. This approach, while necessary from a financial standpoint, contributes to the increasing number of properties being put up for auction.
As financial institutions strive to recover their loans, homeowners and investors find themselves navigating an increasingly uncertain landscape. The impact of these auctions is reshaping the real estate market in Nairobi and its satellite towns, potentially leading to long-term changes in property ownership patterns and market dynamics.
Pure robbery all around! The banks in cahoots with the so called corrupt developers and thieves, knowingly underwriting loans to individuals and entities that they know very well that they cannot meet their financial obligations!!! It’s the Wild West !!!
Been waiting for this moment for a while now!!!