Running and growing a business is not an easy journey for many entrepreneurs, and various challenges have contributed to the collapse of businesses in Kenya.

Studies show that about 33 percent of small businesses fall in the first two years, around 50 percent after five years, with 33 percent making it to 10 years or longer.

From high taxation and unfavorable government policies to high inflation rates, several firms have really struggled, leaving their owners in huge debts.

This article features some of the Kenyan billionaires whose properties were auctioned over debt.

Manu Chandaria

In 2021, Manu Chandaria, one of the wealthiest businessmen in Kenya, lost his manufacturing company Kaluworks Limited to NCBA over Sh6.6 billion debt.

The firm, one of Kenya’s largest manufacturers of aluminum utensils and roofing sheets, was struggling financially due to weak sales and increased competition from other cookware manufacturers.

The billionaire known for his philanthropic work, however, got back the company in August 2022 after local banks waived its loan after failing to revive the firm.

Children of Kenyan Billionaires running multimillion empires

Atul Shah

Former chief executive officer of the fallen retail giant Nakumatt, Atul Shah, lost his Lavington home to auctioneers over Sh2 billion debt.

MP Shah had offered his Lavington home, a four-bedroom villa with a servant’s quarter, as security of the loan acquired from KCB bank in 2011. Shah had taken the loan to manage Nakumatt, which was struggling financially.

However, the firm, which grew from a mattress shop in a rural town to have branches across Kenya and East Africa, was forced to shut down as it struggled to repay its suppliers, landlords, and other creditors.

Ali Punjani

Mombasa tycoon Ali Punjani lost his luxurious mansion in Nyali to the National Bank of Kenya (NBK) over Sh17 billion in debt, which included accrued interest and penalties.

The property, which includes eight bedrooms, all ensuite, a double-storey mansion with staff quarters, a swimming pool, and a changing room block, was auctioned by Garam Investments.