This archive report was first published on 13 August 2019.
Published on August 13, 2019, Housing Finance has put up customer houses worth Sh. 2 billion for auction. The properties, valued at Sh. 2 billion, include standalone houses and apartments in Nairobi and its environs.
According to a report by Business Daily, Housing Finance has signed up auctioneers to sell off the properties, with 11 of them being sold through private treaty. This allows the owners to dispose of their properties at market prices and keep the difference after offsetting the loan balance.
Majority of the properties on sale have reserve prices ranging from Sh. 3.4 million to Sh. 300 million. The priciest property listed for auction is a five-storey, Sh. 300 million commercial building in Nairobi West built on 0.18 acres, which currently houses a hotel.
Other pricey sales include a hotel property in Ngara being sold at Sh. 260 million by private treaty, a house in Kileleshwa up for auction for Sh. 155 million, and two Sh. 65 million houses in Karen and Embulbul in Kajiado County.
Banking sector data compiled from the lenders' financial reports shows that gross non-performing loans increased by Sh. 27.5 billion or 8.7 percent in the first quarter of 2019. This has led to concerns about the impact of non-performing loans on the bank's revenue in the long run.
