David Langat, a prominent presidential ally and billionaire businessman, is experiencing a severe financial downturn as his extensive tea estate in Nandi is now being auctioned off in a forced sale.
This was after he failed to repay a Kshs 2.1 billion loan he owes to local bank.
The auction is scheduled for September 10, 2024, in Westlands, Nairobi, where the auction company hopes to generate Kshs 1.9 billion from the sale.
The announcement of the auction has sparked speculation about the status of the relationship between the businessman and President William Ruto. Langat has previously funded Ruto’s political campaigns for the 2013, 2017, and 2022 general elections.
Given their close friendship, many anticipated that President Ruto would step in to assist Langat with his financial troubles, but this support has yet to be seen.
“Ruto should be the first person to help him now. We wonder why he is not interested in this issue,” an insider privy to the matter noted.
The businessman, once a high-profile figure, has recently adopted a low profile and declined to comment on the latest developments. Close allies report that he is struggling significantly, feeling both shocked and stressed.
“He is worried because over 2,000 people will lose their jobs,” said an insider regarding the tycoon, whose investments span real estate, agribusiness, hospitality, and energy sectors, among others.
“They are targeting his estate for purchase at an auction which will be like a throw away price. Those doing this are his alleged friends,” said the insider.
The insider suggested that some of the president’s associates are targeting the estate and intend to purchase it at the auction.
The recent developments involving Langat are suspected to be politically motivated. In January 2024, his company was awarded a Kshs 60 billion tender to supply machinery at the Kenya Ports Authority, but a powerful figure intervened and abruptly ended the deal, which was then awarded to politician Edwin Yinda.
Moreover, an Indian firm secured a tender to print KRA stamps after Langat, who was the local agent, was barred from the bidding process.
“The Indian firm was instructed to remove Langat from the whole deal and work independently or with others. This shows he was targeted,” said the insider.
Interested buyers will have the opportunity to acquire the 1,342-acre Koisagat Tea Estate, which includes a collection of companies, schools, residential houses, a factory section, a factory building, a multi-story administration building, estate and partnership offices, a fuel station, a main store, a factory workshop, a carpentry workshop, and a weighbridge office.
The auction notice highlighted that the land is equipped with a specialized tea zone designed for export-focused commercial tea production.
“All intending purchasers are requested to view the property and verify the details as these are not warranted by the auctioneers. A deposit of 10% for each property should be paid in cash or banker’s cheque at the fall of the hammer.”
“The balance will thereafter be payable within ninety (90) days for each property to the chargee’s advocates. A bidding deposit of Kshs 10 million for Each property by way of banker’s cheque(s) will be mandatory.
Please note that failure to pay the balance by the confirmed purchaser will result in forfeiture of all deposits paid,” the notice says.
“All the aforementioned property details of encumbrances including names addresses e.t.c. together with user and any other restrictions plus rates/rents payable will be made available on request at our offices. Sale of the above property will be subject to reserve prices and land board consent if applicable.”
