Jirongo land sold for Sh53m to recover Dubai Bank loan

The Central Bank of Kenya (CBK) on Wednesday sold former Lugari MP Cyrus Jirongo’s 103-acre farm for Sh53 million in a bid to recover loans owed to the collapsed Dubai Bank.

The politician-cum businessman, through his three companies, owed Dubai Bank Sh495 million at the time of its collapse.

The Kenya Deposit Insurance Corporation (KDIC) – Dubai Bank’s liquidator – was selling Mr Jirongo’s assets to recover the loans.

Valley Auctioneers, the company contracted to sell the land, sold the 41.56 hectares property registered to Kuza & Allied Ltd to Ninja Transporters who emerged as the highest bidders.

The farm in Chepkoilel, Uasin Gishu County, was put on auction for Sh70 million last July but failed to get a buyer. This was blamed on timing of the sale. The country was headed to the August 8 General Election, and this affected the property market.

KDIC in the first attempt had set a reserve price of Sh70 million which valued an acre on the vacant farm at about Sh680,000.

A sale notice published in the local media indicates that the property is registered in the name of Kuza Farms & Allied Ltd, a company Mr Jirongo fully owns. It is located on the Kitale-Kapenguria road, 5.5km from Maili Saba trading centre.

READ: CBK puts Jirongo farm up for sale over Sh495m debt

Mr Jirongo lost a court case challenging the CBK’s decision to place his company under receivership over the Dubai Bank debt.

Kuza Farms was among six companies the Central Bank placed under statutory management last year after they were found to have defaulted on loans as Dubai Bank went under receivership on August 14, 2015.

Dubai Bank went into liquidation after an external auditor, Horwath Erustus and Company, submitted a report to the Finance, Planning and Trade Committee of the National Assembly in May 2016 indicating that the lender had non-performing loans worth Sh2.5 billion.