Creditors of Banda Homes Limited are set to convene next month after the real estate company was placed under liquidation earlier this year.
The meeting will take place on 18th September 2025 at 11:00 am at the Bankruptcy Trustee’s Office, situated at 316 Upperhill Chambers, 17th Floor, 2nd Ngong Avenue in Nairobi.
Meeting Agendas
The agenda of the meeting will cover two main issues, which are the appointment of a committee of inspection and review, and approval of claims.
The committee will represent the interests of all creditors during the liquidation process, working closely with the Official Receiver (the liquidator) to oversee the administration of Banda Homes’ assets, ensure transparency, and provide input on key decisions such as asset sales and debt settlements.
Creditors will present their claims, which must be filed through the Business Registration Service portal. The liquidator will assess these claims to determine their validity and prioritize payments based on the Insolvency Act.
This step is crucial for establishing how much each creditor is owed and what portion of the company’s remaining assets they may recover.
Creditors have been instructed to file their claims online via the Bankruptcy Trustee’s platform at www.brs2.ecitizen.go.ke using their eCitizen accounts.
The official receiver, Mark Guru, instructed that supporting documentation, such as invoices, statements, and contracts, must be uploaded in PDF format.
“The agenda is to update the creditors on the status of the bankruptcy process and to discuss the way forward in the liquidation.”
Hard copies are also required to be delivered physically to the Trustee’s Office before the meeting date.
End of an era for Banda Homes
Banda Homes Limited, once a household name in Kenya’s real estate sector, had built a reputation for offering affordable housing units in Nairobi and its environs.
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However, the company began facing financial strain in recent years, with reports of stalled projects, delayed handovers, and mounting debts.
Many prospective homeowners who had invested in its off-plan housing schemes found themselves entangled in disputes over incomplete or abandoned developments.
The financial turbulence culminated in bankruptcy proceedings, leading to the appointment of the Official Receiver in March 2025.
This marked the beginning of a liquidation process aimed at recovering whatever value remains in the company for the benefit of creditors.
Liquidation involves taking stock of the company’s assets, selling them off, and using the proceeds to settle outstanding debts in accordance with the Insolvency Act.
The liquidation of Banda Homes is also a cautionary tale for Kenya’s booming but volatile real estate market.
Over the past decade, numerous developers have struggled to complete projects due to rising land costs, high-interest loans, and regulatory challenges.
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Off-plan buyers, in particular, have often borne the brunt of failed ventures, with some losing millions of shillings in deposits and instalments paid for homes that never materialized.
Real estate in Kenya
Kenya’s real estate market in 2025 faces several significant challenges that are shaping its trajectory despite ongoing growth and innovation.
Inflation and volatile fuel prices have driven up the cost of building materials like cement, steel, and transport logistics.
The average construction cost now ranges between Ksh48,750 and Ksh84,000 per square meter, making housing less affordable.
Loans to the building and construction sector declined by 1.3%, limiting developers’ ability to launch or complete projects as high interest rates (CBR at 13%) have made mortgages and development loans less accessible.
The construction permitting process is slow and often plagued by inefficiencies and corruption, with Nairobi’s average approval time at 14 weeks.
Although non-performing loans (NPLs) in construction dropped slightly, the sector still holds Ksh44.7 billion in gross NPLs, indicating financial stress among developers.
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