A cloud of uncertainty hangs over 78 homeowners in Athi River after KCB Bank put up their two-bedroom apartments for sale.
The bank is seeking to recover a Sh1.9 billion loan extended to the property developer, Erdemann Property Ltd.
The apartments, located at Greatwall Gardens, were advertised for auction on May 6, with the sale scheduled for May 21 at Garam Investments' offices in Westlands, Nairobi.
The move came despite last-minute efforts by the homeowners to halt the auction.
According to the auctioneer's notice, the units boast a leasehold title and a spacious 94 square meters of living area.
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Residents also have access to secure parking facilities within the estate.
This development follows Erdemann Property Ltd.'s unsuccessful appeal to the Court of Appeal in April.
The developer had sought a temporary injunction to block the sale, arguing that the homeowners were innocent purchasers who had unknowingly bought units included in KCB's collateral for the loan.
However, the Court of Appeal judges, Justices Gatembu Kairu, Jessie Lesiit, and Grace Nyenye Macharia, dismissed the appeal, stating there was no evidence suggesting KCB would be unable to compensate the developer.
Meanwhile, the homeowners have launched a legal fight of their own.
Separate lawsuits have been filed before the High Court and the Environment and Land Court, aiming to prevent the auction from going forward.
"We innocently purchased the suit units without notice and our interests should not be disregarded against the 2nd defendant’s (KCB’s) intended exercise of its statutory right to which we pray it to be temporarily restrained," a homeowner said in an affidavit.
The outcome of these legal challenges remains to be seen, leaving the homeowners in a state of flux as the auction date approaches.
