Portland cement is looking for a suitable buyer for its 2,076 acres piece of land. The company’s stakeholders in the September 2019 general meeting voted to have the land sold. The money realized from the sale will save the company from the financial challenges it’s currently facing.
The land is located in Mavoko, Machakos county. The state-owned company’s acting MD since June 2019, Stephen Nthei, said they had experienced delays in selling the land due to the COVID-19 pandemic.
Notably, there is a general slowdown in the properties market due to financial difficulties from the effects of COVID-19. However, the state-owned institution is committed to identifying a suitable buyer to get funds to pay up KCB bank and suppliers. The institution defaulted on the KCB loan for three years now, and most of its suppliers remain unpaid. As of June 2020, its debts were valued at Kshs 13.82 billion.
From the land sale, they intend to raise Kshs 20 billion that will be used to pay the outstanding debts. It’s estimated to sell an acre at Kshs 4.8 million or more, depending on the prevailing valuation.
KCB Bank is actively involved in the sale process since it will be one of the primary beneficiaries of the proceeds. Clearing the defaulted KCB bank loan will open new financial avenues for the institution to get more funding.