The Finance Planning and Trade Committee has asked National Bank of Kenya (NBK) to reveal the details of firms or individuals who purchased 11 properties that were publicly listed and sold over the past four years. The committee also wants the names of individuals who bought 3 of the 11 properties.

The committee’s chair, Joseph Limo said they were aware that one of the buyers who had bought a property from the NBK in Mombasa had used the undeveloped land as collateral, exposing the bank to potential losses.

“We want you to give us details of the buyers for all the 11 properties, provide a list of who financed the purchase and whether the bank was involved in one way or another,” Mr Limo told NBK chief executive Wilfred Musau and chairman Mohammed Hassan.

Waihenya Ndirangu, MP from Ruaraka asked the bank to reveal the sale details by submitting the MPs with sale agreements.

Mr Musau told the committee that the decision to sell the properties was approved by the board in 2014. The decision came with the condition to comply with regulatory requirements where financial institutions should be “below the 20 percent ratio of non-core business.”

“The board approved the same for the bank to come out of the non-core business of owning brick and mortar.

“We are yet to dispose of two properties, meaning that we are still in breach of the law,” Mr Musau told the committee.

He also said the bank has several assets with tenants leasing the extra space which continues to earn revenue for the bank.

“We identified 11 assets across the country and disposed them over the last four years. We have two properties that are outstanding.  This is the Eldoret building that sits at the core of the town that is still in discussion. We are engaging an institution that wants to own the asset but I can’t disclose (the details) because of client confidentiality,” he said.

Mr Musau added that another property in Mombasa Old Town was yet to be bought. “We are still in the market looking for a potential buyer.”

 

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