Valley Auctioneers will auction the 41.56 hectares property belonging to Kuza & Allied Limited at a price of not less than the Sh70 million reserve price.
The auction is in connection with the Sh495 million the politician owes collapsed Dubai Bank and which the Kenya Deposit Insurance Corporation (KDIC) – the bank’s liquidators – wants settled.
Mr Jirongo lost a court case challenging the CBK’s decision to place his company in receivership over the Sh495 million his firm owed to the collapsed Dubai Bank.
Former Lugari MP Cyrus Jirongo’s farm is up for sale Wednesday morning as the Central Bank of Kenya (CBK) moves to recover millions of shillings he owes a collapsed bank.
The auction is in connection with the Sh495 million the politician owes collapsed Dubai Bank and which the Kenya Deposit Insurance Corporation (KDIC) – the bank’s liquidators – wants settled.
Valley Auctioneers, the company contracted to sell the land, will auction the 41.56 hectares property belonging to Kuza & Allied Limited at a price of not less than the Sh70 million reserve price.
The farm, located in Chepkoilel, Uasin Gishu County was put on auction for Sh70 million last July but failed to get a buyer. The failure to get a buyer was blamed on timing of the sale in the build up to the August 8 General Election, which had slowed down the property market.
The set reserve price of Sh70 million values an acre on the vacant farm at about Sh682,000.
A sale notice published in the local media indicates that the property is registered in the name of Kuza Farms & Allied Limited, a company Mr Jirongo fully owns.
It is located on the Kitale-Kapenguria Road, some 5.5km from Maili Saba trading centre and is being sold to recover part of the Sh495 million loan that Mr Jirongo’s firm owes the bank, which is under liquidation.
Mr Jirongo lost a court case challenging the CBK’s decision to place his company in receivership over the Sh495 million his firm owed to the collapsed Dubai Bank.
Mr Jirongo owns the land through Kuza Farms and Allied Limited, which was among the six companies the Central Bank of Kenya placed in receivership last year after they were found to have defaulted on loans as Dubai Bank went into statutory management 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.
The list of companies embroiled in the Dubai Bank liquidation saga includes Zap Group (Sh889 million), Kwanza Estates (Sh412 million), Sololo Outlets (Sh103.2 million) and Torino Enterprises Limited (Sh138.9 million).
Dubai Bank was placed under receivership after the CBK found it in breach of several banking regulations. Mr Jirongo has been embroiled in other protracted legal disputes that saw him declared bankrupt last year.
The High Court found that the politician, who ran for president in last year’s elections. was unable to service his debts amounting to Sh700 million.
The bankruptcy orders were, however, lifted two weeks later after he contested the decision arguing that it was prejudicial to his candidature in the October repeat presidential election.
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