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Jirongo’s 1,000 acre Ruai land set for auction

A controversial 1,000-acre piece of land owned by businessman Cyrus Jirongo in Nairobi’s Ruai area is set for auction next Wednesday.

The sale of the prime property, estimated at Sh1 billion, is said to have been prompted by failure to service a multi-million shilling loan borrowed from collapsed Postbank Credit Limited by a firm associated with Mr Jirongo.

Postbank Credit went under after the 1992 General Election.

A source at Keysian Auctioneers Thursday said proceeds from the sale will go to the Central Bank of Kenya, which is preparing to wind up seven collapsed financial institutions within the next one year.

The liquidation process involves paying depositors a guaranteed sum of up to the Sh100,000 insured deposits, while those with balances in excess of the sum are entitled to receive liquidation dividends based on the value of recoveries and proceeds from the sale of the institution’s assets.

The National Social Security Fund (NSSF) entered into an agreement with Sololo Outlets, a company associated with Mr Jirongo, in 1992 to buy an incomplete housing project in Nairobi’s South B Hazina estate.

The collapsed Postbank Credit financed the deal which consisted of 420 homes, a school and a shopping centre, worth Sh1.2 billion.