Retired African Inland Church (AIC) Bishop Silas Misoi Yego’s multi-million property in the upmarket Kileleshwa area is set to be auctioned over a Sh. 140 million loan. This is after Bishop Yego lost a bid to stop a bank from auctioning the property.
According to a report that appeared in the Business Daily on Tuesday, Bishop Yego had borrowed the money from Trans National Bank in 2014 to construct 50 apartment units on the property through his firm, Siro Investments. Last year, though, he failed to service the loan. This saw Trans National Bank ask Purple Royal Auctioneers to recover the loan through a public sale.
“Bishop Yego moved to court to challenge the auction saying the bank had undervalued the property and that the outstanding balance was Sh. 86 million not the Sh. 143 million quoted by the lender. He also complained that the bank failed to issue him the required notification of sale,” said the report.
The report added that Justice David Majanja ruled that since Bishop Yego admitted the indebtedness, and could therefore not suffer the loss that cannot be compensated by damages.
“According to the correspondence between the parties, the plaintiff has been in default since 2019. He has not met promise to settle the debt despite several offers by the bank to accept settlement,” said justice Majanja.
“The judge said Bishop Yego based his complaint on the fact that he had entered into a sale agreement with a third party who was willing to buy the property at Sh. 200 million. Mr Yego had attached a sale agreement made between him and Peter Kivolonzi who had agreed to purchase the suit property for Sh. 200 million. He told court that the sale derailed in the wake of Covid-19, whose effects has sharply cut sales and reduced appetite for properties,” the report added.