The Star Publication Limited has been put under distress and faces auction for failing to pay rent arrears for its newspaper printing plant situated at Kay Complex along Mombasa Road.

In documents served to the officials at the plant on Tuesday and seen by Swala Nyeti, The Star is in arrears of rent of Sh1,736,231.17 owed to Kay Constructions Company Limited.

Skypac Auctioneers, which has been contracted by the landlord’s lawyers to levy distress of rent, visited the plant on Tuesday but officers at the plant refused to sign the documents.

“We refer to the above matter wherein we act for Kay Constructions Company Limited. We have been instructed to issue instructions to you to proceed and levy distress of rent as against the above referenced tenant who is in arrears of rent of Kshs.1,736,231.17/- as per the attached schedule,” said a letter signed by Noel Ngoloma Okwach of Okwach & Company Advocates dated September 18, 2023.

According to documents seen by Swala Nyeti, The Star entered into a tenant agreement with Kay Constructions Company Limited on October 21, 2021 to occupy the said godown.

The lease agreement was signed by lessors Kanji Kunverji Patel and Dhanbai Kanji Kunverji on one side, and Patrick Quarcoo and William Pike as the lessees on behalf of the Star.

The documents in our possession show that the leased establishment attracted a deposit of Sh1,635,808, which is equivalent to four months’ rent exclusive of Value Added Tax (VAT).

16 items, including production and printing machines, and motor vehicles, were attached by the auctioneers and are set to be sold off if the rent arrears are not settled within 14 days.

The Star Publication Limited is owned and run by the Radio Africa Group, which also operates Kiss 100 fm, Classic 105 fm, East Fm, Radio Jambo, Smooth FM and Kiss TV.