A four-bedroom double-storey house in Runda belonging to former Housing Finance executive Caroline Armstrong and her husband Michael Ogwapit has been put up for sale over a Sh72 million debt owed to her former employer.
The house is on a half-acre with a staff quarter and a car port and is set to be sold when the auctioneer’s hammer falls on May 9, 2023.
Housing Finance is seeking to recover at least Sh72 million from the sale of the house over a debt that fell into default a few months ago, says Garam Investments which is leading the auction.
“We have been instructed by our client to sell the house situated on Runda Drive on public auction and the asking price is Sh71.5 million,” a representative of Garam Investment told the Business Daily on Monday.
“They took a loan from Housing Finance and they defaulted on payment.”
Ms Amstrong previously served as the director of strategic projects at HF as well as on the board of the institution's philanthropic arm.
She currently serves on multiple boards, including at Kenya Airways, stockbroker AIB-AXYS Africa as the chairperson, and the National Housing Corporation.
She becomes the latest prominent personality to face auctioneers over unpaid bank loans. The house, which is located on Runda Drive and about 570 metres to the west of Runda Road, is currently not occupied, according to the auctioneer.
Those interested in buying the property need to place a deposit of Sh5 million.
A deposit of 10 percent should be paid in cash or banker’s cheque at the fall of the hammer, says the auctioneer in the public notice.
“Sale of the above property will be subject to reserve prices and land board consent if applicable,” says Garam Investments Auctioneers.
The sale of the property is coming at a time defaults on mortgages have jumped in recent months, pointing to widespread distress in the real estate sector as Kenya’s economy slows down amid rising interest rates.
