The National Bank of Kenya (NBK) #ticker: NBK has put the palatial Nyali home of Mombasa tycoon Ali Punjani up for auction for a long-term debt that sources say exceeds $ 1 billion, including interest and penalties.
The eight bedrooms, all en-suite, two-story mansion with staff quarters, a swimming pool, and a changing room block are located on 0.4 acres in the Bondeni neighborhood of former Nyali registered to Shrike Investments Limited G / T Rising Star Commodities.
“The property is located on the Nyali Estate in Mombasa County. Access from Links Road is via Nyali Road to Moyne Drive, to Kenyatta Avenue and Green-Wood Drive. Subject is situated along a nameless, unnamed access road and is a beach patch in the second row approximately 300 meters from Green Wood Drive, ”Garam’s auctioneers said in an advertisement.
The house came to attention in 2019 when police spent 20 hours trying to breach the fortress in a raid on the mogul’s home. Authorities have been searching for Punjani for alleged links to the illegal sale and trafficking of narcotics.
He is a close collaborator of the Akasha brothers, Baktash and Ibrahim, convicted in New York of running a drug ring in East Africa, Afghanistan, Europe and the United States of America.
KCB Group #tickerKCB, which acquired NBK in 2019, has stepped up its search for loan defaulters to help clean up a legacy of bad debt that has piled up over the years.
NBK needs to recoup some of the bad loans that crippled the lender and forced the government to merge the bank with KCB in 2019.
Gross NBK bad loans stood at $ 26.3 billion in September 2020 from $ 2.2 billion in 2012.
Punjani’s dealings with NBK drew attention in 2016 during a court case by the lender’s associate relationship manager Edwin Kipchumba, who revealed that the billionaire had secret channels that helped him receive millions from the bank.
Mr. Kipchumba wanted to be reinstated after he alleged that he was forced to resign following an audit by Deloitte & Touché that revealed there was a misrepresentation of the bank’s delinquent loans.
“Rising Star Commodities Limited was credited with Sh580.6 million for NBK on December 31, 2015. The same amount was debited, on the same date. The sum was shown as a new loan.