Equity owner, PETER MUNGA, among 2 KIKUYU tycoons in financial freefall as auctioneers close in on them over unpaid loans – RUTO’s economy is battered



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

Post a Comment

0 Comments