Kampala International University (KIU) is set to auction its sprawling educational complex in Kajiado County to recover a staggering $15 million owed to mortgage lender Housing Finance.
Valley Auctioneers announced on Monday that bids will be accepted for the complex, situated on a 61.3-acre tract in Kisaju, just 1.5 kilometers off the Nairobi-Namanga Highway.
The incomplete facility boasts several structures, including a four-storey administration block, five interconnected tuition blocks, a four-storey library, and additional housing, dining, and guest accommodations.
The decision to auction follows KIU’s unsuccessful attempts to block the sale after the Supreme Court dismissed its appeal in April. The loan, originally obtained in 2014 to develop a campus in Kitengela, has seen its amount balloon to over $24 million due to compounded interest rates of 9.5% starting January 2018.
Initially securing $10 million in January 2014, the university faced delays in acquiring the remaining $5 million, leading to a legal battle. An arbitrator ruled in favor of Housing Finance in 2019, followed by dismissals of subsequent appeals by KIU in both the High Court and Court of Appeal.
In its April ruling, the Supreme Court affirmed that the case did not warrant its jurisdiction, emphasizing that mere claims of rights violations by a party do not justify an appeal. The judges underscored that KIU’s appeal lacked the necessary legal foundation to proceed, marking a pivotal moment for the university facing financial and legal challenges.
The auction is scheduled for September 19, with potential buyers urged to verify all details ahead of bidding.
