Court declines to stop auction of Njenga Karume’s Jacaranda Hotel

The Jacaranda Hotel in Nairobi, which is owned by the family of the late Cabinet minister and business tycoon Njenga Karume, has been ordered to pay Sh4.5 million to Guaranty Trust Bank as part of clearing the arrears it owes the lender.

Justice Wilfrida Okwany directed that the payment be made directly to the bank and not any other third parties including the Kenya Revenue Authority by Friday this week.

KRA is also seeking to recover taxes it is owed by the four-star hotel.

The hotel, which is among the few surviving businesses that the late politician left behind, has been earmarked for sale to recover a Sh257.6 million loan owed to GT Bank.

The court has however declined to stop the proposed sale but ordered the bank not to place any more advertisements as it impacts on the Karume’s estate.

The four-star hotel, which is in the Westlands suburb, has 128 bedrooms and sits on 3.5 acres of prime land. The auction has been set for January 22.

The trustees moved to court on Tuesday to fight the planned auction, describing the hotel as the jewel of the Karume empire.

The bank had placed an auction ad in newspapers on Monday.

Justice Okwany has ordered the parties to negotiate ahead of the hearing set for January 20.

– Additional reporting by Edwin Okoth