Former MP John Mututho’sMulti-Million-Shilling NairobiProperty Put Up for Auction
Former Chair of the National Authority for the Campaign Against Alcohol and Drug Abuse (NACADA) John Mututho has had his house put up for auction.
The double-storey 8-bedroom mansion located in Riruta Satellite in Kawangware is registered in the name of John Michael Njenga Mututho.
The land which the house sits on has 17 other single rooms which have also been put up for sale by Garam Investments.
According to the auction documents, the house brings in a rental income of Ksh 160,000.
It is situated about 950 metres off Dagoretti Corner-Kawangware-Uthiru Road and measures 0.23 acres and has outstanding land rates and penalties totaling Ksh 165,590.
Though it is not clear which lender Mututho defaulted on, he joins a growing list of Kenyans who have had their properties auctioned.
The statistics point to a struggling economy which is aggravated further by the impact of the Covid-19 pandemic on businesses and households.
Data from the Central Bank of Kenya (CBK) shows that 14.5 percent of all loans taken have defaulted.
The figures represent a sharp increase of all defaulted loans which stood at Ksh 349.94 billion at the end of February 2020 but hit Ksh 432.45 billion in the same period in 2021.
As a result of the defaults, the CBK noted that banks were aggressively looking into auctioning properties of their borrowers to recover the loans.
“For the quarter ending March 31, 2021, banks expect to intensify their credit recovery efforts in all economic sectors. The intensified recovery efforts are aimed at improving the overall quality of the asset portfolio,” CBK Governor Patrick Njoroge said in a recent report