- The move follows an out-of-court settlement between NBK and PCEA Ruiru Parish Development Foundation.
- The lender is selling the land for Sh820 million.
- National Bank says the sale is a win-win outcome after church group fell back on its repayments.
The National Bank of Kenya (NBK) has taken over a 70-acre plot earlier owned by a church group to offset an outstanding loan.
The move follows an out-of-court settlement between NBK and PCEA Ruiru Parish Development Foundation.
The lender is selling the land for Sh820 million.
NBK chief executive Wilfred Musau on Monday said the NBK now owns the 70-acre parcel of land as ‘repayment’ for its loan but had retained PCEA Ruiru Parish Development Foundation as the sole selling agents.
“We agreed last year to slice off a portion of the suit land equivalent to the value of money owed to us and walked off. It is much easier than moving to court to lodge a claim that might take longer to conclude as well as raise costs that might eat into the land’s value. The deal was concluded last year and each party is happy,” he said.
The NBK in a notice Monday said the parcel of land had been subdivided into 268 quarter-acre plots with a reserved price of Sh3.2 million per plot for buyers seeking a minimum of four plots.