Monday, January 3,
2024 - Auctioneers
are now targeting billionaire businessman Peter Munga and former Thika MP,
Patrick Wainaina, over unpaid loans tied to their macadamia processing firms.
Munga, the majority owner of Equatorial Nut Processors, is
facing the risk of losing 75 million Britam shares that he used as collateral
for a Ksh 433.8 million loan from ABC Bank.
A recent ruling by the High Court rejected his petition to
halt the sale of these shares, which are currently valued at Ksh 544.5 million.
Munga's past financial struggles include a 2017 settlement
where he saved five Nairobi properties worth Ksh 400 million from being sold to
settle another debt.
Meanwhile, Wainaina, who owns Jungle Macs EPZ, has his own
financial troubles, owing to an undisclosed loan amount owed to Stanbic Bank.
His two properties in Thika, totalling 4.39 acres, are at
risk of being auctioned.
Over the years, both Munga and Wainaina have expanded their
business interests beyond macadamia processing, diversifying into sectors such
as real estate, energy and manufacturing.
However, the recent downturn in the macadamia sector,
exacerbated by increased competition from Chinese buyers and weaker
international demand, has put considerable financial strain on their companies.
The challenges facing local processors have intensified,
especially after the Government temporarily lifted restrictions on raw
macadamia exports, leading to a glut that dropped farm-gate prices
dramatically.
With processors struggling to secure raw nuts and facing weak overseas demand, both Munga and Wainaina's businesses have become vulnerable to market pressures.
The Kenyan DAILY POST
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