The Kenya Union of Savings and Credit Cooperatives (KUSCCO) plans to auction homes and land holdings worth approximately KSh 1.7 billion that belong to 684 Kenyans who defaulted on loans from its housing fund. KUSCCO MD Arnold Munene said they hope to recover 80% of funds. , the SACCOs’ umbrella organisation, has now started the second round of land and home auctions in various locations nationwide. These include Kitengela, Kiserian, Kajiado, Nyaya Estate, Kisumu, Thika, Machakos, Webuye, Bungoma, Kisaju, Lukenya, and Syokimau.
Depending on the location, the next auction phase will take place from November 6 to November 10 and from November 14 to November 28, 2025. “KUSCCO, in partnership with Watts Auctions, invites you to a transparent auction of verified, prime properties across Kenya. All arise from non-performing mortgage loans under the KUSCCO Housing Fund (KHF) and have undergone due statutory processes,” it stated in a notice on Wednesday, October 8. This comes after a similar exercise in February 2025, when KUSCCO listed 80 properties for sale. Why is KUSCCO auctioning properties? KUSCCO seeks to recover defaulted mortgages that were issued under the KUSCCO Housing Fund, a subsidiary of KUSCCO that provided loans for the purchase of homes or the construction of residential complexes.
The aim, according to KUSCCO managing director Arnold Munene, is to recoup at least 80% of the KSh 1.7 billion. A reserve price, often established at no less than 75% of the current market prices for the homes up for auction, will apply to the sale at auction.”We have been managing a KSh 1.7 billion portfolio under the KUSCCO Housing Fund. This comes directly from the members of the mortgage scheme who have fallen behind. Since each case must go through the legally needed notices, a 90-day statutory demand notice from our lawyers, a 40-day final notice, and eventually a 45-day notice from the auctioneer, we are working on the procedure in stages,” Munene told Daily Nation. Over 680 loan defaulters will lose their properties. In 2013, KUSCCO began the multibillion-shilling housing project, first in Kitengela and then in Nyanza, Kisii, the Western area, and the coastal region.
By Japhet Ruto
