Jacaranda Hotel, owned by the family of the late politician Njenga Karume has its auction date set for January 22 over unpaid Ksh257.6 million loan owed to Guaranty Trust Bank.
Through a notice published by Regent Auctioneers, the hotel that sits on massive properties has been officially announced for auction on Wednesday, January 22 thus inviting the public for the proceeding.
“Duly instructed by our clients, we shall set the under mentioned properties by public auction on Wednesday 22nd 2020 at our auction mart new Kireita building, Kirinyaga Road at 11am. This is a 128 bed roomed four-star hotel with en suite bathrooms, satellite tv, and wireless internet connection situated in the heart of Westlands,” read the notice in part.
According to the notice, interested bidders are expected to place a deposit of Sh5 million that is refundable.
Karume, who died in 2012 after a successful political career left the property under his trustees, after defaulting and accumulation of interests.
It’s auction was first announced about six months ago, where the loan was said to have advanced after Karume was unable to clear before his death as well as the family members and trustees after.
Apparently, Guarantee Trust Bank (GTB) as on July 1, 2019 stated that the arrears were amounting to Sh257,645,708.53.
The notice by the GTB also indicated that any interested party wishing to stop the auction should be able to clear the outstanding amount together with the interests accrued.
“We have been advised by our client, Guaranty Trust Bank Ltd, that you are still in arrears amounting to Ksh257,645,708.53 as at 5th July 2019. If you wish to stop the auction, you will have to pay all the debt due together with the interest and costs incidental thereto,’ read the notice by the Hotel management.
The hotel also faced auction following accumulated VAT and Pay As You Earn (PAYE) arrears amounting to Ksh153 million owed to the Kenya Revenue Authority (KRA) in 2018.
KRA had already seized equipment belonging to the hotel but the issue was brought to rest after an agreement was reached to have the hotel pay the arrears in Ksh50 million monthly installments.
More of Karume’s properties were also advertised for sale in 2018 including the Village Inn, 11 Parcels of land in Kiambu regarding Sh2.5 billion debt.