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The iconic Jacaranda Hotel, owned by the family of former Cabinet Minister the late Njenga Karume is set to be auctioned on January 22nd.
The hotel, sitting in Westlands, is one of the lucrative multi-billion properties that Karume amassed during his lifetime.
A notice seen by Pulse Live Kenya and published by Regent Auctioneers indicated that Jacaranda Hotel, including all its buildings and a piece of land the size of 3.506 acres would be up for a public auction on the 22nd of January 2020.
“Duly instructed by our clients, we shall set the under mentioned properties by public auction on Wednesday 22nd 2020 at our auction mart new kereita building, Kirinyaga Road at 11am,” the auctioneer’s notice read in part.
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“This is a 128 bedroomed four-star hotel with ensuite bathrooms, satellite tv, and wireless internet connection situated in the heart of Westlands,” the notice further indicated.
To bid, interested purchasers are required to place a refundable deposit of Sh5 million.
Karume’s estate has been unable to pay a Sh257 million loan owed to Guaranty Trust Bank (GTB) which the bank is seeking to recover through the auction.
The defaulted loan is far below the estimated valuation of Jacaranda Hotel that is strategically located in one of the most prime locations in Nairobi.
A 2019 report by Cytonn Real Estate showed an acre of land in Westlands has an average price of Sh145 million – meaning the land alone where Jacaranda sits could be well over Sh500 million and the combined value could be over the Sh1 billion mark.
Karume, a wealthy businessman and politician, died in 2012, leaving his multibillion estate in the hands of trustees.
However, his businesses have over the past 7 years been in the red over succession fights, bad debts, mismanagement, and tax issues with Kenya Revenue Authority.