TSS Grain Millers in Shimanzi, which is part of the empire businessman Twahir Said built.-- FILE PHOTO | NMG
What you need to know:
Twahir Sheikh Said, who died early in January, had defaulted on loans amounting to more than Sh3.5 billion
KCB Group, NIC Bank and Bank of Africa (BOA) are among the lenders that had disbursed loans to various subsidiaries of the TSS empire.
Before his death, TSS blamed the debt crisis on Mr Ahmed and his children whom he accused of reckless borrowing.
More property belonging to Mombasa tycoon Twahir Sheikh Said (TSS) at the Kenyan coast and Machakos will be auctioned this month to offset the defaulted loans disbursed to his business empire.
The assets that are expected to go under the auctioneer’s hammer on April 24 include nine five-bedroom villas overlooking Indian Ocean, office block in Mombasa, a coconut ginnery in Lamu sitting on 27.6 acres, 1.2 acres of vacant sea front plot and several go-downs in Mombasa and Athi River.
The multi-billion shilling property are captured in a notice by Garam Investments Auctioneers — which in January announced plans to auction idle and developed beachfront land in Lamu, Mombasa and Kilifi counties with a combined holding of more than 6,700 acres owned by the tycoon who grew powerful under the Moi era.
Mr Said, who died early in January, had defaulted on loans amounting to more than Sh3.5 billion that various entities in his vast business empire had borrowed from local banks but were unable to pay by early last year.
KCB Group, NIC Bank and Bank of Africa (BOA) are among the lenders that had disbursed loans to various subsidiaries of the TSS empire, which subsequently failed to service the debts.
The sale is expected to fetch billions of shillings, helping to retire the TSS loans that are estimated to constitute the banking industry’s largest exposure to a single entity.
High value
Garam says prospective bidders will need to deposit between of Sh10 million in some of the properties before participating in the sale, indicating the high value of the properties.
The sale is expected to attract institutional investors and wealthy individuals.
The villas facing the ocean generate monthly rate of Sh2 million. Office block in Mombasa is leased for Sh500 million monthly.
“The property is developed with nine five-bedroomed villas, two blocks of three bedroomed maisonettes, three one-bedroomed bungalows cafeteria and banquet complex and a jetty,” the auction notice said
The assets on sale represent properties that the TSS entities had pledged directly to the banks or through KAAB Investments, a company owned by the late businessman’s brother-in-law Aweys Mohamed Ahmed.
Mr Ahmed was part of a group that ran the TSS empire more recently as ill health slowed the billionaire down.
The sale marks the latest dismantling of the TSS empire that was built on debt, and more recently fell victim of gross mismanagement.
Kenya’s biggest bank by assets KCB last year took over the management of TSS Unga Millers after it failed to repay a Sh1 billion loan.
Loan defaults
Bank of Africa also moved to seize some of TSS’s assets after Juja Coffee Exporters, another of the family’s businesses, defaulted on a Sh1 billion loan.
Other TSS entities are said to have defaulted on a Sh1.4 billion NIC Bank loan and Sh300 million National Bank credit.
Before his death, TSS blamed the debt crisis on Mr Ahmed and his children whom he accused of reckless borrowing after he relinquished the management of the family business to them.
TSS said in court documents that he had stepped aside from the day-to-day running of the businesses in 2010 due to health problems.
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