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K’Osewe’s core asset auctioned for 330m shillings loan

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K’Osewe’s core asset auctioned for 330m shillings loan


William Guda Osewe, owner of K’Osewe Ronalo Foods, leaves the Milimani Courthouse on September 27, 2021. PHOTO NMG

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Summary

  • An auctioneer has listed a prime commercial property owned by prominent restaurant owner K’Osewe on a 330 million shillings loan owed to GT Bank.
  • In a newspaper advertisement, Garam Investments invited interested buyers to acquire the commercial/residential apartment in Nairobi South later this month.
  • The five-story building owned by William Osewe Guda, popularly known as K’Osewe, is located along Five Star Road and has five stores and two-bedroom houses.

An auctioneer has listed a prime commercial property owned by prominent restaurant owner K’Osewe on a 330 million shillings loan owed to GT Bank.

In a newspaper advertisement, Garam Investments invited interested buyers to acquire the commercial/residential apartment in Nairobi South later this month.

The five-story building owned by William Osewe Guda, popularly known as K’Osewe, is located along Five Star Road and has five stores and two-bedroom houses.

Mr Osewe has been battling auctioneers since 2018 over a 330 million shillings loan he borrowed from Guaranty Trust Bank (GT Bank), secured by an unfinished hotel in Kisumu and South C apartments, but failed to repay the loan.

According to the auctioneer, the flats fetch a monthly rent of 830,000 shillings and the title to the land has been with a leasehold interest for 99 years since 1986.

“Running water, electricity and sewer services are connected to the property in question. An additional water storage tank is available to supplement mains water,” the ad reads.

In February, the Court of Appeal prevented the lender from auctioning off the property along with its four-star hotel in Kisumu on the condition that it deposit 25 million shillings in court within 45 days.

“We have reviewed the claim and conclude that the grounds raised by the claimants are arguable and cannot be characterized as frivolous to the point of being dismissed as not substantial. Their properties are at risk of being sold and if this request is not granted, they are at risk of suffering a colossal loss if they are transferred to third parties because of the value involved, and the appeal would be rendered ineffective”, have said judges Hannah Okwengu, Patrick Kiage and Jamila Mohamed.

The gated seven-story hotel in the upscale 1.3-acre Milimani Estate was due to be sold in January after Mr Osewe failed to persuade High Court Judge Thripsisa Cherere to quit. prevent the bank from putting it up for auction.

But he rushed to the court of appeal, arguing that he continued to service their loan despite the disruption caused by the Covid-19 pandemic.

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