The Central Bank of Kenya (CBK) has sold 103-acre land belonging to former presidential aspirant Cyrus Jirongo for Sh53 million in an attempt to recover a loan he owes collapsed Dubai Bank.
At the time of its collapse, the former Lugari MP had borrowed Sh495 million from the bank through his three companies, but defaulted the loan.
The property registered to Kuza & Allied Ltd was sold to Ninja Transporters, who emerged as the highest bidders. It was auctioned by Valley Auctioneers, an auction firm hired by CBK .
The land, which is located at Chepkoilel, Uasin Gishu County, was put on sale for Sh70 million in July last year, but failed to attract a buyer, blamed on the timing of the sale, which came as country was heading to the August 8th polls.
The politician lost a court case where he was seeking to block CBK from putting his company under receivership over the Sh495 million the firm owed to Dubai Bank.
Kuza Farms and Allied Limited is among the six firms that CBK placed under receivership in 2017 after they were found to have defaulted on loans, as Dubai Bank went into statutory management in 2015.
The High Court had last year declared Jirongo bankrupt, after it found that he was unable to service his debts totaling to Sh700 million.
However, the bankruptcy orders were lifted two weeks later after he challenged the decision, arguing that it was prejudicial to his candidature in the October 26th repeat presidential poll.
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