This archive report was first published on 3 September 2021.
Thika Millionaire's Woes Deepen As Creditors Come Calling ¶
Published on September 3, 2021
Thika millionaire Julius Gitau's financial troubles have worsened, with creditors auctioning his properties to recover a Sh18 million debt.
Gitau's disappearance in September 2021 sparked a police investigation, but he resurfaced after 11 weeks, claiming he had been kidnapped and held hostage.
However, detectives investigating the matter found his story did not add up, and he was eventually served notice that his land in Thika measuring 0.228 acres, on which sits a two-bedroom bungalow, two blocks of seven single room rental units and an ablution block, will be auctioned.
Also attached for auction is 0.0482 acres at Majengo in Thika, on which sits the five-storey Kaharati Apartments. On the ground floor is a shop, six bedsitters and a servant's quarters. In total, the property has 42 bedsitters.
The other property attached is at Happy Valley residential area, measuring 0.1927 acres, and which has remnants of a demolished maisonette.
The three properties are valued at Sh80 million by Thika-based Genesis II valuers, but the auctioneers want to dispose of them to recover Sh18 million.
Gitau currently runs a kiosk at the Thika town main stage after his two wholesale shops known as Gwa Gitau wa Mali were auctioned.
When asked about the auction, Gitau explained: "These are the levels that the Covid-19 has handed investors to a point many have become mentally sick, others lost their lives to depression and the rest, like me, are facing all manner of unnecessary conflict with creditors," he said.
Gitau referred Nation to the Kiambu County Business Community, which he said is fighting for the rights of many traders in the town who are facing similar challenges.
The community's chairman, Mr Alfred Wanyoike, told Nation: "We are treating Mr Gitau's woes as our collective crisis that needs our combined input."
Wanyoike said Gitau's case is the classic example of how bad fiscal policies of a government in times of a global pandemic can sink investments and put livelihoods at risk.
He further suggested the notice of intent to auction more of Gitau's properties by September 8 to recover the Sh18 million he owes is malicious since it has devalued the properties targeted by more than 500 percent.
Gitau's police file indicates that by September 21, he was worth Sh260 million -- this being quantified estimates of his cash in bank accounts, movable and immovable assets.
The Gatanga Directorate of Criminal Investigations office that was looking into his disappearance found he had accumulated debts of Sh50 million, but which he had secured from financial institutions by attaching properties worth a market value of Sh140 million.
This includes his Sh46 million life insurance that he had used as collateral to secure Sh9.5 million.
According to the investigation records, Gitau was also in a Sh10 million debt with suppliers to his Jugi Enterprises that dealt in general merchandise supplies to schools.
Thika West Deputy County Commissioner Mbogo Mathioya also delved into the matter saying: "Mr Gitau was not actually in a financial mess. It is only that he made some very unwise moves of taking expensive loans that devalued his estate. Even to date as auctioneers descend on his properties, he is not badly off. If only he were to get expert advice on how to go about it."
