Relief for Moi-era power broker Hoseah Kiplagat
Once powerful Kanu functionary, Hoseah Kiplagat, has received a reprieve after the planned auction of his multi-billion shilling properties was stopped.
A notice in local media indicated that the planned auction of the properties in Nairobi’s upmarket Karen neighbourhood and Eldoret town had been stopped.
Early this month, Garam Investments had placed an advertisement in local dailies inviting interested bidders to bid for several properties belonging to the former Baringo Kanu supremo.
Properties included his expansive five-acre home in Karen and several business complexes in Eldoret town.
“It is developed with a three-bedroom (master ensuite) main house complex, son’s two-bedroom guesthouse (one suite), a three-bedroom servants’ quarter, a garage and carwash bay,” Garam said in the auction notice.
Court order
“It has a double-storeyed business room and guest entertainment block, a swimming pool (with fountain) and a baby pool, sauna and steam bath complex (with Jacuzzi), Office block complex, squash complex, three green houses and two beehives.”
Other properties that had been placed for auction included 11 parcels of land designated as industrial-cum-residential properties located within Kenmosa area in Eldoret town.
The auction, which was to take place between tomorrow and Friday, was to recover a Sh378 million loan, which Kiplagat had guaranteed two firms — Eldoret Concrete Poles Limited and Timber Treatment Limited.
Kiplagat had, however, obtained a court order temporarily freezing the sale of the properties.
The companies had obtained the loan on May 14, 2018 but had failed to repay, prompting Bank of India to auction the securities
Kiplagat, who served as the Co-op Bank chairman for a decade before resigning in 2003, has, however, got a temporary reprieve after the defaulting companies obtained court injunction.
Eldoret Concrete Poles and Timber Treatment, said in court papers that they borrowed the money to boost their working capital and purchase of tractors and machinery.
They argued that they wrote to the bank on March 27, requesting for a three-month grace period after running into difficulties arising from the Covid-19 pandemic but the lender did not respond.
They further stated that they had engaged a new financier to take over the loan, and therefore, the auctions should be stopped.
