KCB eyes $54 million windfall from Prime Kenya land sale

KCB Group Plc, East Africa’s largest banking group by assets, is moving ahead with plans to raise about $54 million, or roughly Sh7 billion, from the sale of a long-disputed 2,000-acre parcel in Mavoko, Athi River.

The land, tied to a past loan settlement, has become one of the bank’s most complex recovery cases in recent years. 

The lender is trying to turn the asset into cash as part of a wider effort to tidy up its balance sheet and cut exposure to unpaid loans.

The property, however, sits at the center of a long-running dispute involving squatters, businesses, and questions over ownership. 

The parcel was originally linked to a settlement with East African Portland Cement Company after the firm consolidated a $53 million debt with KCB in 2019.

But years of informal settlement on the land have slowed any clean transfer and raised the likelihood of legal disputes. 

KCB has now reclassified the property, valued at about $54 million, as an asset held for sale.

The bank says it expects the disposal to follow its normal operating cycle, with a focus on structured regularisation rather than large-scale evictions.

Land deal at the center of recovery push 

The Mavoko parcel has drawn attention because it sits at the intersection of credit recovery and informal settlement.

Occupation of the land dates back more than a decade, complicating efforts to enforce ownership rights despite the settlement agreement. 

KCB says it holds legal control of the land following approvals from the Central Bank of Kenya.

Chief executive Paul Russo has said the lender is not seeking to operate as a property seller but to recover value tied to a defaulted loan.

Regularisation plan for occupiers 

Instead of forced evictions, the bank has outlined a plan that would allow eligible occupiers to acquire formal titles.

KCB has also indicated it may provide financing to help qualified residents complete the purchase process. 

The approach is aimed at reducing friction while speeding up recovery.

It also reflects the bank’s effort to avoid drawn-out legal battles that could delay the sale further. 

Asset sales support broader loan cleanup 

KCB has stepped up recoveries through auctions, restructurings, and targeted disposals as part of its effort to bring down non-performing loans, which fell to $1.6 billion in 2025 from $1.7 billion a year earlier. 

KCB Group Plc operates as a non-operating holding company overseeing its banking subsidiary in Kenya and regional operations across East Africa, alongside businesses in insurance, investment banking, and asset management.

The group maintains one of the region’s largest branch and agent networks, giving it a wide footprint across multiple markets.