Mr Alex Kazongo, former NSSF managing trustee. PHOTO | FILE
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The prime property, which sits on 2.62 acres on Riat Hills in Kisumu, was to be sold on Friday, but Mr Kazongo struck a late deal with the bank on Thursday afternoon.
A seven-bedroom mansion owned by Alex Kazongo, the former managing trustee at the National Social Security Fund (NSSF), was on Friday saved from auction after he paid half of the loan he owes a local bank.
The prime property, which sits on 2.62 acres on Riat Hills in Kisumu, was to be sold on Friday, but Mr Kazongo struck a late deal with Consolidated Bank on Thursday afternoon.
The auction bid followed Mr Kazongo’s failure to service a multi-million shilling loan from a local lender that is majority-owned by the government.
“The sale was stopped on Thursday. The owner paid half of the bank loan and promised to settle the rest in due course,” said a source at Dalali Traders Auctioneers who requested anonymity.
“We were expecting good bids given the location of the home and interest we have received since placing the auction notice on November 4.” The property comprises a 20-room double storey house with seven bedrooms and a semi-detached servant quarters.
Riat Hills is increasingly boasting a new breed of investors —well-to-do individuals and real estate developers with a vision for affluent, urban living designs — a factor that has seen the price of an acre of land rise to Sh5 million, up from Sh2.5 million three years ago and Sh1.5 million in 2004.
The cancelled sale was the second involving a prominent personality that has been halted within a week.
Last Monday, former Lugari MP Cyrus Jirongo stopped the Central Bank of Kenya (CBK) from auctioning his 1,000 acre land in Nairobi’s Ruai estate over a Sh20 billion loan he allegedly owes the bank.
The CBK, through the KDIC, had planned to auction the land Tuesday to recover money that collapsed Postbank Credit lent Sololo Outlet — a company owned by Mr Jirongo.
Mr Kazongo borrowed the money from a bank associated with NSSF while still working at the fund.
But his contract at the NSSF was terminated in February 2012 over what the fund’s trustees termed as failure to meet the board’s expectations.
Riat Hills has been attracting wealthy individuals from the region and developers from Nairobi who are moving in to explore the property market in Kisumu.
Former Premier Raila Odinga has built a 10-bedroom house with several conference rooms, multiple kitchens, expansive garden and offices.
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