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KIU’s  property in Kenya to be auctioned over shs91bn loan dispute

by Musa Mbogo
in News
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Kampala International University (KIU) is on the verge of losing a key piece of property in Kenya, as a public auction has been scheduled following years of financial wrangles and failed court appeals.

The auction, set for Wednesday, August 27, 2025, at 11:00 a.m., will take place at the offices of Keysian Auctioneers, located on the 3rd floor of CPF House along Haile Selassie Avenue in Nairobi.

At the center of the sale is a 61.3-acre freehold parcel of land in Kajiado County, barely two kilometers off Namanga Road in the Kiasju area.

The land, which belongs to KIU, hosts several uncompleted structures intended for a campus including a four-storey administration block, five-storey dining facility, guesthouse, powerhouse, and a four-bedroom bungalow all left in varying stages of construction.

The auction follows a prolonged legal and financial battle triggered by a $10 million loan KIU secured in January 2014 to support the development of a campus in Kitengela, Kenya. A delay in the release of the remaining $5 million sparked a dispute that quickly escalated into a court saga.

Despite multiple attempts to block the forced sale, KIU lost at every turn — from arbitration to Kenya’s High Court, the Court of Appeal, and finally the Supreme Court, which dismissed the university’s last-ditch appeal. The top court ruled that KIU’s case did not merit constitutional review, saying claims of rights violations were too general.

Meanwhile, interest on the loan — calculated at 9.5% annually since 2018 ballooned the debt to over $24 million. The original lender, Housing Finance, was granted the legal go-ahead to recover the money through sale of the Kajiado property.

Interested bidders must deposit KES 5 million in cash or banker’s cheque to participate in the auction. The winning bidder will be required to pay 10% of the bid price immediately and settle the balance within 90 days or as agreed with the lenders.

The property is available for viewing from 10:00 a.m. to 5:00 p.m., and the auctioneers require prior arrangements to accompany bidders to the site. The sale is subject to a reserve price, and the auctioneer reserves the right to reject any bid without explanation.

Despite the looming sale, KIU has remained silent, issuing no public response to the development.

The Kajiado campus was once part of KIU’s ambitious expansion plan, positioning the institution as a regional academic powerhouse. But the failed project now stands as a stark reminder of how quickly visions can stall when financing falters.

Founded in 2001, Kampala International University is a private, not-for-profit institution chartered by the Ugandan government in 2009. Its main campus is in Kansanga, Kampala, with a major health sciences campus in Ishaka, Bushenyi, home to the KIU Teaching Hospital.

The university also operates in Tanzania and had planned a full-fledged presence in Nairobi.

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Musa Mbogo

Musa Mbogo

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