One of Kenya and Nairobi's historic hotels will go up for auction on 29 August.
It is not only the structure that will be up for auction, but primarily a number of assets owned by the hotel: cold rooms, reception counters, refrigerators, coolers, exercise machines, and a host of other high-end hotel equipment.
The Intercontinental is one of the capital's historic hotels, located in the business centre (CBD) just a five-minute walk from the Holy Family Cathedral and less than a kilometre from the better known and economically sound Sarova Stanley. The hotel has 376 rooms equipped with a refrigerator and minibar, but who knows what will be left of all the other amenities, including the large swimming pool facilities.
As Kenyans website notes, ‘Kenya's property market is feeling the effects of ongoing economic pressures, with auction houses seizing high-value assets, including property, vehicles and hotel furnishings. The wave of auctions is affecting several sectors, leaving even established companies struggling financially.
To participate in the Intercontinental auction, bidders must pay a refundable deposit of Kes. 50,000 and in the case of purchases, they must settle the payments within 48 hours of the auction. The terms of the auction are strict and reflect the urgency and gravity of the situation.
Many of the current auctions are also a reflection of Kenyans' many pre-covid investments, when GDP was growing exponentially and the country's future looked bright.
Kenyans add: ‘these auctions are not just routine sales, but a reflection of the broader economic challenges facing Kenya. High inflation, rising interest rates and the depreciation of the shilling have rendered many companies and individuals unable to service their debts, forcing them to liquidate assets at a loss'.
There is land, real estate all over Kenya, farms, luxury boutique hotels (the Osotua Luxury Resort in Naivasha will be auctioned in September) as well as cars, off-road vehicles and more, which are also being auctioned by the Treasury, which has seized them from insolvent citizens.