Tuju to be auctioned

[RV Pundit]

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Meanwhile…

High Court has ordered auctioning of all properties belonging to Raphael Tuju in Nairobi over Ksh 1.6B loan default.

This life. No balance.

— Ahmed Mohamed ((ASMALi)) (@Asmali77) November 30, 2022

[sema]

Did Tuju not invest his money wisely or what happened? This is the problem with corruption and why uhuru fought so hard to stop ruto. Africans need to learn how to make money productively. I expect to see other bankruptcies now from uhuru's cronies.

[KenyanPlato]

getting into a bad loan in kenya is very easy.  muite, Arthur magugu and Njehu gatabaki are good examples of people that made bad investments via loans and got auctioned

[KenyanPlato]

in the 1980s a lot of kipsigis and Nandi were committing suicide enmass due to inability to pay agricultural loans
I saw a lot of turmoil in 1990s. every business man I knew went under. my dad best friend borrowed about 15 m. by the 2000 the bank wanted 35 million. he sold all his properties for 45m and left the village for Namanga as a pauper with no land

[Georgesoros]

It is so easy to get into a mess, yo wont believe it. Borrow at 12% and repayments are horendous. He was greedy.

[RV Pundit]

In mid 1990s. I remember this guy who was retired from KCB bank with golden handshake; he invested on maize; the rain fails; he committed suicide;
I personally dont like or take loans;
You have to be incredibly disciplined with a really SOLID business plan.
If I take loans - I try to take max six months - I repay them as soon as possible.
I have seen enough people enslaved by loans not to want it.
Kenya loans - both banks and et c- are shylocks - who will load fees and fines - until you wont be able to pay.
It's better to do investment kipole pole....sleep like a baby...and never worry.
You have to avoid pressure from people who borrow loans....start to run ahead....give them few months or years...they lose everything.
KFA loans - big problem was you handed over your title deed as security - so if rains fails - you're dead - completely dead - many run mad - if not commit suicide. KFA would come and auction your land.

in the 1980s a lot of kipsigis and Nandi were committing suicide enmass due to inability to pay agricultural loans
I saw a lot of turmoil in 1990s. every business man I knew went under. my dad best friend borrowed about 15 m. by the 2000 the bank wanted 35 million. he sold all his properties for 45m and left the village for Namanga as a pauper with no land

[RV Pundit]

12 percent in kenya is a steal - 15-20 percent - and once you show signs of default - they start loading fees/fines/charges.
Only the very financially discipline and with proven business manages.
Saccos are great - because it employment - personal unsecured loans also good.
Loans secured by property - 90% of the time you're dead.
The best is to use windfall from your investment - say bonus from job, bonus from tea or farming, windfall somewere, to make big investment moves.
You rather wait for those big breaks in your life.
Otherwise if you go to banks - you're kaput.

It is so easy to get into a mess, yo wont believe it. Borrow at 12% and repayments are horendous. He was greedy.

[sema]

Honestly, if you are stealing that much money, why not just hide in a bank account in mauritius. The most I would do is buy a beautiful beach villa in  mauritius or seychelles so i can occassionally escape the 3rd world dust of africa. The rest? sit in a bank.

The problem with african thieves is they steal and think they're like warren buffet, but you are just a thief with no brain power (hold the money and let it earn basic 3% interest)

[Kadudu]

Did Tuju steal or borrowed money from the bank? Had he stolen, he would not have problems of repayment.

Honestly, if you are stealing that much money, why not just hide in a bank account in mauritius. The most I would do is buy a beautiful beach villa in  mauritius or seychelles so i can occassionally escape the 3rd world dust of africa. The rest? sit in a bank.

The problem with african thieves is they steal and think they're like warren buffet, but you are just a thief with no brain power (hold the money and let it earn basic 3% interest)

[RV Pundit]

He probably used his connection to get the loan despite no qualifying - hence the struggles.
Get a billion Kshs loan in kenya you need more than your security - you need political connections.
That is almost significant porfolio for some of those small banks.
He went for EADB because kenya gov has shares in there.

Did Tuju steal or borrowed money from the bank? Had he stolen, he would not have problems of repayment.

[Georgesoros]

Its so easy to be bankrupt in Kenya especially if youre politically connected. Pple give you money to buy influence and then bam, you are 1 billion in debt. Then sharks surround you.

[RV Pundit]

Yes - this still a big problem - politically connected get big loans - that sink banks when they default.
While millions of hustlers - will repay with 98 percent - and NPL will always be 2%.
Not 15-20 percent NPL from politically connected.
Insider lending or politically connected lending is bane of kenya banks - and they transfer the mess to every borrower.
Majority of small time borrowers dont default.
I worked in NGO with micro-finance component - our repayment rate was always 99 percent.

Its so easy to be bankrupt in Kenya especially if youre politically connected. Pple give you money to buy influence and then bam, you are 1 billion in debt. Then sharks surround you.

[KenyanPlato]

michuki died cash poor and deep in debt. it easy to go broke in kenya

[RV Pundit]

Windsor golf club took him down.
It was never going to turn profitable in the middle of forest in kiambu.
Majority of big boys take loans with vanity projects with doubtful ROI.
They use connections to get bank loans.
Once out of power; the loans get re-called; the bank manager become strict; they go bankrupt.

If banks lent micro-loans; they would be more profitable; interest rate would come down; and name it.

Of the big boys - Only Ndegwas and Kenyattas - may survive.
Nyachae also will survive - as he engaged in real business.
Moi empire - only Gideon Moi part will survive - as he is serious businessman - the others are selling left right and center

michuki died cash poor and deep in debt. it easy to go broke in kenya

[RV Heavy Hitter!]

[sema]

Of the big boys - Only Ndegwas and Kenyattas - may survive.
Nyachae also will survive - as he engaged in real business.
Moi empire - only Gideon Moi part will survive - as he is serious businessman - the others are selling left right and center

How will the kenyatta's survive now? and what is it the ndegwa's did to survive for so long?  Moi stole so much, I Idon't see how they will ever go down and gideon a serious business man? really?

It looks like the key in kenya is get a tender and bank the money offshore (don't try to start any businesses using loans) - or put it into real estate like all the CS's (they're all millionaires how did they do it)