Ranalo Foods, popularly known as K’Osewe owing to its owner William Guda Osewe, will on January 22, 2021 have it’s seven storey hotel in Kisumu auctioned.
“The development comprises an incomplete seven storey building with a mezzanine floor which is 60 percent complete and semi detached double storey building which is 27 percent complete,” says Garam Investments that’s is leading the auction.
Guaranty Trust Bank has been trying to auction Osewe properties since 2018 over Ksh328 million debt.
The bank has been trying to auction Blue Waters Hotels Ltd, which owns the Bluewaters Hotel in Kisumu, Ranalo Foods Upper Hill and Kimathi Street, Nairobi.
Read: Ranalo Foods “K’Osewe” Faces Auction by Guaranty Trust Bank As Debts Mount
In October, Justice Cherere allowed Guaranty Trust Bank to sell Bluewaters Hotel, spelling more doom for Mr Osewe, who also owns a residential apartment in South C.
The Sh328 loan had been charged to the Kisumu hotel and the South C apartment.
In court submissions, Mr Osewe argued that he had been servicing the loan, and that the facilities cannot be auctions since they are four times the value of the loan.
He also argued that an auction would be detrimental to a franchising deal with with Dubai’s Aleph Hospitality and American giant Marriott International. The bank said it is not a party to the franchising agreements.
Also, the bank denied claims that Osewe had been servicing the loan, arguing that he had been using court orders to buy time.
“The plaintiffs/applicants did not demonstrate that the defendants/respondents would be unable to adequately pay them damages as may be ordered should the intended appeal succeed,” Justice Cherere said.
Read Also: Popular Ranalo’s (K’Osewe) Restaurant Up For Auction Over Rent Arrears
If the Kisumu hotel is auctioned, Mr Osewe’s dream that started from under a tree in Kaloleni selling ‘mshikaki’ will now remain anchored on the city centre branch.
The Kisumu branch was once demolished after it emerged that it was built on a Kenya Railways land. It was relocated to a new area, and Mr Osewe says that if auctioned, it will be hard to get such a location for the hotel.
Other shareholders of the Bluewaters include Mr Osewe’s wife wife Stella and children Joseph, Staicy and Edward.
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