KCB Bank has won the case to auction the Great Wall Gardens in Athi River.
This will see 100 homeowners lose their homes, Erdemann Property Limited the developer has been in court over a KSh 1.9 billion loan case with KCB.
According to the Standard, the loan dates back to 2015 when the developer secured a facility of KSh 1.3 billion from KCB Bank during the construction of 2,190 units.
Edermann Property Limited had agreed with KCB to give up 100 units in the estate as security for the loan.
The developer then sold the 100 units which went against its agreement with KCB.
Erdemann admitted they made a mistake selling the units whose owners are now facing an auction that will see them lose their homes.
WoK found that most of the homeowners bought the units at KSh 3 Million which is not the first time the developer has faced scrutiny.
In 2020, the developer faced backlash from homeowners over delays in the issuance of sub-leases by its Chinese builders.
“We bought these units at Sh3 million back in 2017 and we paid the stamp duty for that figure but the value has appreciated, we are concerned that the longer the process takes we will be forced to incur penalties,” a homeowner was quoted then.
