Stanbic Bank Kenya will auction some assets belonging to the Naivasha-based Karuturi flower farm to recover loan dues of over Ksh1.6 billion.
High Court Justice David Majanja allowed the sale to proceed after declining Karuturi’s request to direct the lender and receiver managers to sell its six land parcels and other assets through a private treaty.
Nation. Africa reports that the targeted lands are registered in the names of Surya Holdings Limited and Rhea Holdings Limited.
In 2021, the Supreme Court also rejected Karuturi’s further bid to pursue the matter.
In December 2010, Karuturi Limited had secured lending from Stanbic Bank Kenya Limited amounting to KSh227 million and further lending of US$3,855,060 about two years later in January 2013.
The debt was contested by the shareholders in the High Court, which in January 2018 granted a go-ahead for the bank to sell the company’s assets in the event its directors defaulted on making payment in respect of the amounts set out in an order within the prescribed periods.
