Companies

Kenya Re to reopen sale of its Sh1bn Kisumu property

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Kenya Re managing director Jadiah Mwarania. FILE PHOTO | NMG

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Summary

  • Kenya Reinsurance Corporation (Kenya Re) will launch a fresh bid to sell its Reinsurance Plaza building in Kisumu before the end of the year, chief executive Jadiah Mwarania told the Business Daily.
  • A previous bid to sell the prime property in February suffered setback after failing to attract the expected offers.

Kenya Reinsurance Corporation (Kenya Re) will launch a fresh bid to sell its Reinsurance Plaza building in Kisumu before the end of the year, chief executive Jadiah Mwarania told the Business Daily.

A previous bid to sell the prime property in February suffered setback after failing to attract the expected offers.

"We will go back to the market before end of this year," Mr Mwarania said in an interview.

Kenya Re had set a starting price for bids at Sh1 billion in the initial sale. It remains to be seen whether Kenya Re will sweeten the deal this time by dropping the floor bidding price.

The eight-storey commercial property —which is one of Kisumu's most iconic buildings— is situated at the junction of Jomo Kenyatta Highway and Oginga Odinga Street in the town centre, sitting on 2.23 acres of land.

"The property and the developments therein are being offered for sale on ‘as is where is’ basis and is subject to a reserve price of Sh1 billion for the whole lot, Kisumu Municipality/ Block 7/378," Kenya Re said in tender documents last February.

Kenya Re first announced the planned sale in December 8, last year.

"The successful bidder will be required to assume ownership of the property within 14 days after making the final payment," it said in the February notice.

The firm’s earnings could be boosted if significant gains are realised from the sale.

Kenya Re is locked in court battles over ownership of several of its prime properties worth Sh1.6 billion.

An annual report by Kenya Re, shows that the corporation is seeking to reclaim four investment properties located in Nairobi’s Ngong Road, Kiambu Road, Jomo Kenyatta International Airport and Shanzu in Mombasa.