Justice Abigail Mshila held that if the asset provided as collateral or security fails to fetch the amount enough to settle the debt, a lender is barred from going for the guarantors. In a ruling that is likely to serve as a respite to many guarantors, the court further ruled that a lender is not entitled to any compensation if the asset held as security is auctioned and still the sums undue are not recovered. She held that auctions free up guarantors who then cannot continue to be part of collateral after the lender opts to auction assets owned by the principal borrower. The judge made the findings while setting aside a statutory demand issued by Ecobank to listed property developer Home Afrika for payment of a disputed Sh938 million loan. Justice Mshila said a lender cannot go for properties of a loan guarantor when it has already been allowed to sell assets of the principal borrower charged as security. Citing Section 97 of the Land Act, the judge said a lender is not entitled to any compensation if it is not in a position to recover the outstanding loan during an auction of the charged property. Ecobank had issued…

First-time homebuyers funded by savings and credit cooperative societies (saccos) will from July get a tax relief of up to Sh25,000 on their monthly salary in a proposed plan to amend the law by the Co-operatives ministry. Co-operatives Cabinet Secretary Simon Chelugui has pledged to push through the amendment to the Income Tax Act to extend mortgage reliefs to members of saccos who get loans to improve, build or buy homes for their own use. The deductions, which are equivalent to interest paid on home loans, currently apply to borrowers under commercial banks and mortgage lenders under Banking Act, building societies and National Housing Corporation’s tenant purchase scheme. “My ministry will work closely with… Kenya Revenue Authority to address the challenges affecting saccos on affordable housing… [including] alignment and operationalisation of the Income Tax Act to give effect to mortgage tax reliefs for the first-time home buyers who borrow from saccos by listing in the schedule qualifying mortgage loans providing institutions,” Mr Chelugui told sacco leaders during a forum on affordable housing in Nairobi. “This was entrenched through banks and we can extend the same to Saccos.” Sacco Societies Regulatory Authority chief executive Peter Njuguna assured the sacco chiefs the…

Persons who hold freehold or leasehold land where the right of occupancy is more than 21 years will be treated as the rateable owners if a Bill that will inform how counties tax property sails through Parliament. Majority Leader Kimani Ichung’wah has tabled a Bill that seeks to provide for enhancement, certainty, uniformity and fairness in the levying of property rates by the 47 county governments. It will ensure that the government does not lose out on the appreciation of plots. Property rate is a tax on the value of a property, including land usually assessed by a rating authority with help of a valuer. “The Bill seeks to provide a buoyant source of revenue for county governments. The revenue is necessary to enable each county government to perform the functions assigned to county governments as set in the Fourth Schedule to the Constitution and enable county governments to realise development agenda,” Mr Ichung’wah said in a memorandum to the Bill. Property rates will be reviewed every five years in changes contained in the National Rating Bill 2022. If passed by lawmakers, the law will compel counties to review their valuation roll every five years. The proposed law will replace…

Kenya’s push to actualize a smart city at the Konza Technopolis has gained momentum with the roll-out of four new projects. The projects, under its second phase, are an Intelligent Transport System (ITS) and Integrated Control Centre, the establishment of a Startup Ecosystem, the development of Smart Logistics in Konza and the development of the Konza-Nairobi Corridor Transport Network. The four projects under the Economic Innovation Partnership Program (EIPP) are backed by a grant from the government of South Korea. Konza Technopolis is a flagship project of Kenya’s Vision 2030 economic development and is set to become the country’s technology and innovation hub. “Konza Technopolis has identified several candidate projects for consideration and I am pleased to note that four additional projects have been approved for implementation during the second year of the development program,” ICT Cabinet Secretary Eliud Owalo said on Tuesday at the launch of the projects. The four projects follow the successful completion of targets in the development of Konza City in the first year. The Korea Trade-Investment & Promotion Agency and the Konza Technopolis Development Authority are implementing the projects on behalf of the two governments. Kenya is banking on the transfer of tech expertise from…

Ask just about any real estate agent to list the three most important things a property should have, and you will likely hear: “location, location, location.” But why does location matter so much? For starters, you cannot move a home at least not easily or inexpensively. When you buy a home in a good location, it is usually a solidlong-term investment. Real estate agents often advise their clients to buy the worst house a property that could use some tender loving care on the best block. Why? Because fixing up a home in a great neighborhood will give you the best return on your investment. Quite simply, it will be easier to sell later on. Conversely, you can buy a beautiful home that does not need any work. But if the block is sketchy or just plain bad, you could have a hard time selling the property at a decent price. So if “location, location, location” is so important, what makes a location good? Here are five characteristics to look for when buying a home. If you can get all five, chances are the home is a great investment. A safe neighborhood People want to live where there is little…