The Jacaranda Hotel has been put up for auction, a move that is aimed at recovering the KSh257.6 million it owes Guaranty Trust Bank (GT Bank).
The auction date was originally set for 21st July 2019. However, the management pleaded for more time to sell other properties to settle the loan. However, with the debt still not settled, the new auction date has been set for 22nd January 2020.
“Duly instructed by our clients, we shall sell … very prime property in Westlands by public auction,” Regent Auctioneers said in a notice.
The hotel has, for a long time, been in a tussle with its lenders. In June last year, Regent Auctioneers sent a notice auction, to which management responded by promising to sell land so as to clear the loan.
Furthermore, the Kenya Revenue Authority had also lined up auctioneers to recover value added tax (VAT) and pay as you earn (PAYE) arrears amounting to KSh153 million owed by the hotel. However, the matter was settled after KRA agreed to a repayment plan of KSh50 million in monthly installments, and payment of KSh7.9 million to auctioneers who had already secured the hotel’s property to recover the tax.
Other property under the Karume name meddled up in debt include the Village Inn and 11 parcels of land totalling to 111.24 acres at the Kacharoba Farm in Kiambu County.