2023 was tough for most Kenyans economically as espoused by the fact that many tycoons across notable estates in Nairobi lost their homes to auctioneers.
Kenyans living in affluent neighbourhoods were the most hit by auctioneers as detailed in the numerous notices published in the local newspapers.
Notably, Kenyans.co.ke, identified notable trends in auctions during the year as outlined below.
Here are some of the estates highlighted by Kenya;
An aerial view of Karen Estate in Nairobi taken on March 12, 2020.
Properties in Kenya
Muthaiga and Loresho
The two estates witnessed several auctions between September to November. For instance, on October 3, 15 homes in the two estates were put on auction.
The homes included three and four-bedroom houses sitting on a quarter of an acre.
According to the various auction companies, the houses were listed for auction after their owners failed to service their loans to various financial institutions including banks.
Kileleshwa and Karen
Kileleshwa and Karen estates in Nairobi were also subjected to the auctioneer’s hammer.
During the year, several multi-million houses were put on auction with many of the houses estimated to be generating over Ksh120,000 in rent every month.
Similar to the houses auctioned in Muthaiga and Loresho, the houses in the two estates were either three to four-bedroom family houses.
The houses also stood in their own compounds and had luxurious amenities such as swimming pools and gyms.
In recent years, many tycoons have left Nairobi’s posh estates to build homes in satellite towns.
However, despite 14 satellite towns offering more economic reprieve given their lower cost of living, some Kenyans still lost their homes.
During the year, Kitengela, Kiambu, and Machakos were hard hit with a series of auctions.
Most of the houses put on auction were family homes ranging from three-bedroom to four-bedroom houses.
For instance, 13-storey villas being developed by a company in the Gatanga area along Thika Super Highway were put on auction.
“The plot measures 1.319 Hectares (3.259 Acres) approximately. The housing project comprises 13 townhouses of various designs and at different stages of construction,” read the auction notice published in December.
A photo collage of an aerial view of Kiambu Town (left) and apartments at Fourways Junction along Kiambu Road (right).
Properties in Kenya
Why the Auctions
As detailed earlier, the auctions were mostly attributed to the rise in non-performing loans.
With many Kenyans unable to pay back their loans, banks and financial institutions were forced to move to recover the loans by selling property.
According to the Central Bank of Kenya (CBK) 2023, Annual Report covering the 2022/2013 Financial Year, the gross non-performing loans increased from Ksh514.4 billion in June 2022 to Ksh576.1 billion in June 2023.
“The increase in NPLs in the period was mainly due to a challenging business and operating environment,” read the report in part.
On the other hand, more auctions are expected to be witnessed next year with the CBK warning banks that big borrowers are also likely to default on loans.