Two companies accuse Absa Bank of unlawful disposal of property in auction

In a complaint to the DCI, advocates for Kimani Operations Limited and Kimani Ventures Limited allege that the bank and several other parties were involved in suspicious transactions surrounding the auction and disposal of properties used as security for loans advanced between 2021 and 2022.

The lawyers led by lawyer Danstan Omari want investigators to establish whether the alleged auctions were genuine and whether there was collusion between the bank, auctioneers and companies that emerged as purported purchasers of the properties.

According to the complaint, Kimani Operations Limited obtained a facility of 195 million shillings in February 2021, secured by two properties known as Twin Towers, while Kimani Ventures obtained a 130 million shilling facility secured by property in Section II, Eastleigh.

The lawyers say additional facilities and charges brought the value of the transactions involving the two companies to hundreds of millions of shillings.

However, they accuse Absa of failing to provide a comprehensive account of the loan transactions, including disbursements, payments received, interest calculations, charges and the current status of the loan accounts.

The lawyers have also raised questions over an alleged auction advertised for July 7, 2025.

They claim no lawful auction took place on that date, arguing that access to Nairobi was severely restricted due to the Saba Saba demonstrations, with roads barricaded and movement restricted by security agencies.

They want the DCI to establish whether bidders were present, whether competitive bidding took place and whether the alleged auction was instead a pre-arranged disposal disguised as a public auction.

The complaint further raises questions over the incorporation of two companies that allegedly acquired some of the properties.

Astralis Verge Limited was incorporated on May 15, 2025, while Samatar Solutions Limited was incorporated on June 2, 2025, both shortly before the disputed auction.

The lawyers claim Astralis Verge later underwent changes in its directorship and want investigators to establish the companies’ ownership, beneficial ownership, source of funds, bank transactions and communications relating to the alleged purchases.

The complaint also singles out auctioneer Serah Njeri Wamwea, whom the lawyers allege participated in the auction process and was among the purported successful bidders.

They claim her business premises are located in the same building where the auction was scheduled to take place, raising questions over what they describe as a potential conflict of interest.

The lawyers further allege that their clients have not been furnished with documents showing who attended the auction, the bidding register, reserve price, highest bid, memorandum of sale, proof of payment or evidence of how the proceeds were applied to the outstanding loans.

They have also questioned the valuation of the properties, alleging that the securities were deliberately undervalued to facilitate their disposal at prices below their true market value.

The complaint refers to another purported auction conducted on July 30, 2025, involving L.R. No. 36/11/350 in Eastleigh, and questions why a second auction was necessary after the earlier alleged sale.

Despite the purported disposal of several securities, the lawyers say Absa continues to demand approximately 394.8 million shillings from their clients.

They further allege that after the bank took possession of some of the properties, it began collecting rent and deriving income from them.

The advocates are now asking the DCI and the Banking Fraud Investigation Unit to investigate Absa Bank and its officers, the auctioneers, Samatar Solutions Limited, Astralis Verge Limited and Fancy Friends Auctioneers.

The investigations, they say, should establish whether offences including conspiracy to defraud, fraudulent misrepresentation, unlawful acquisition and disposal of property, collusion and abuse of the statutory power of sale were committed.

The complaint comes amid an ongoing dispute over the properties, with the lawyers saying their clients have challenged the alleged sales in court.

They have also urged investigators to act expeditiously, arguing that the properties are long-standing investments and important sources of livelihood for the companies’ directors and their families.