Days after Garam Investments Auctioneers published its intent to auction former NACADA chair John Mututho’s property in Riruta, the court has stopped it.
Mututho moved to court seeking an injunction stopping the sale of the 8-bedroom house which he says was his matrimonial home back in the day.
Garam had also advertised adjacent property belonging to Mututho which were 17 rental single units.
The auctioneer described the property as being situated “950 metres off Dagoretti Corner-Kawangware-Uthiru Road and measures 0.23 acres and has outstanding land rates and penalties totalling Ksh 165,590.”
The court heard that Mututho used the property as security for a Ksh9 million loan he took from a local bank.
In court papers, he said the bank is now claiming Ksh20 million. The court halted the auction that had been slated for August 27.
Mututho is the latest victim of a growing number of VIPs who have faced auctioneers due to loan defaults.
In January, Nyeri billionaire businessman Dr Thuo Mathenge also came under auction over a ksh197 million loan.
Family Bank, Jamii Bora and I&M Bank moved to court seeking orders to auction the businessman’s property.
Dr Mathenge owes Ksh95 million to I&M Bank, Ksh 121 million (Jamii Bora Bank) and Ksh80 million (Family Bank).
Graham Investments Auctioneers auctioned Dr Mathenge’s five parcels of land.
Four of the parcels of land had been developed agriculturally while the other one is a commercial property.
His Brade Gate headquarters along Nyeri-Nanyuki highway is the commercial plot under auction while another 14-acre plot in Chaka, another in Kamiru and two others in Gacika area were up for auction.
The Brade Gate centre is also home to Bantu One Africa hotel, a prestigious establishment in the county.
Brade Gate is his flagship multi-million poultry business. It is the heartbeat of the name in the poultry business.