Stanbic Bank and Housing finance report of recovering a combined Sh1.03 billion in customers’ assets last year. The move underlined the increased debt distress that comes with unpaid loans.
In their report, Stanbic bank reveals having repossessed assets worth Sh312.2 million, indicating a drop of 18.2 percent from the previous year.
“It is the Group’s policy to dispose of foreclosed properties on the open market, at fair market value. The proceeds are used to reduce or repay the outstanding claim. In general, the Group does not occupy foreclosed properties for business use,” reveals Stanbic.
Further, the bank reveals the seizure of customer assets financed under the VAF included saloon cars, trailers, and prime movers. Commercial and residential properties were also seized as part of the financing under personal and mortgage loans.
HF made the bulk with Sh717.1 million of property seized through private treaty agreements in the year it exited the construction business.
“We have taken an approach of agreeing with customers to transfer the facility to us at an agreed price for us to sell given the distressed property market. Some of the houses have nave now been sold,” said HF Managing Director Rober Kibaara in the Tuesday interview.