In Kenya, real estate buildings auctions are a growing trend, driven by bank recoveries, tax defaults, and government asset sales. These auctions offer unique investment opportunities to acquire commercial buildings, office blocks, apartments, and industrial properties—often at below-market prices.
In 2025, auctions are increasingly digital, transparent, and accessible to the public, with properties sold by:
- Commercial banks (repossession due to loan default)
- County governments (unpaid land rates)
- National Government (underutilized public assets)
- Kenya Revenue Authority (KRA) (tax recovery)
🏢 Types of Buildings Sold at Auction in Kenya
| Office Blocks | Buildings in Westlands, Upper Hill, Mombasa CBD | Investors, Saccos, corporates |
| Apartment Blocks | 5–20 unit buildings in Ruiru, Syokimau, Ngong Road | Rental investors, developers |
| Retail & Shopping Malls | Mini-malls in Athi River, Kitengela | Entrepreneurs, retail chains |
| Industrial Warehouses | Factories in Syokimau, Dongo Kundu | Logistics firms, manufacturers |
| Hotels & Guesthouses | In Mombasa, Naivasha, Nakuru | Hospitality investors |
| Government Buildings | Vacant county offices, depots | Private developers, Saccos |
🏛️ Who Conducts Real Estate Building Auctions?
1. Commercial Banks
Banks auction properties repossessed due to mortgage or loan default.
- Banks Involved: KCB, Co-op Bank, Equity, NCBA, Stanbic
- Process:
- Notice published in newspapers and websites
- Public auction or sealed bid
- Winning bidder pays 10–20% deposit, balance in 30–90 days
- Where to Find:
- Bank websites (e.g., kcb.co.ke )
- Auctioneers like Auction Mart Kenya, Smith & Miller
2. County Governments
Auction land and buildings for unpaid land rates.
- Counties: Nairobi, Kiambu, Mombasa, Nakuru
- Process:
- Notice in local papers and county portals
- Auction at city hall or online
- Must clear all arrears + penalty
- Website: nrb.go.ke , kiambu.gov.ke
3. Kenya Revenue Authority (KRA)
Sells properties to recover unpaid taxes.
- Properties: Luxury homes, commercial buildings, land
- Platform: https://www.kra.go.ke → “Public Notices”
- Process:
- Public auction or tender
- Bidders must be pre-qualified
- Payment via bank transfer only
4. National Government & State Corporations
Disposes of underutilized public assets.
- Agencies: Ministry of Lands, National Treasury
- Examples:
- Old provincial administration buildings
- Vacant government housing blocks
- Platform: eProcurement Portal
📈 Why Invest in Auctioned Buildings?
✅ Below-Market Prices – Often sold at 20–40% discount
✅ Prime Locations – Office blocks in Westlands, apartments in Mombasa
✅ High Rental Yields – Buy cheap, rent high
✅ Development Potential – Renovate or redevelop
✅ Transparency – Increasingly digital and traceable
⚠️ Risks & How to Mitigate Them
| Title Disputes | Conduct aland searchvia LSK advocate |
| Unpaid Debts | Confirm allrates, taxes, and utility billsare cleared |
| Structural Issues | Hire alicensed surveyorfor inspection |
| Eviction Challenges | If tenanted, followRent Tribunalprocess |
| No Bank Financing | Auctions requirecash or pre-approved loans |
✅ Always do due diligence before bidding.
🔎 Recent & Upcoming Building Auctions (2025)
| 4-Storey Office Block | Westlands, Nairobi | KSh 180M | July 15, 2025 | KCB Bank |
| 12-Unit Apartment Block | Syokimau | KSh 60M | August 3, 2025 | Co-op Bank |
| Industrial Warehouse | Athi River | KSh 45M | June 28, 2025 | Smith & Miller |
| Hotel Building | Mombasa CBD | KSh 120M | July 20, 2025 | KRA |
| County Government Offices | Nakuru | KSh 80M | August 10, 2025 | Nakuru County |
💡 How to Participate in a Building Auction
- Find Auction Notices
- Check bank websites, KRA, county portals, newspapers
- Inspect the Property
- Visit the site, check condition, access, and tenants
- Conduct Due Diligence
- Land search, title verification, tax clearance
- Register to Bid
- Submit ID, KRA PIN, and deposit (if required)
- Attend Auction or Submit Bid
- Live event or sealed bid
- Pay & Transfer
- Full payment in 30–90 days, then title transfer
FAQs
Q: Where can I find real estate building auctions in Kenya?
A:
- Bank websites (KCB, Equity, Co-op)
- KRA Public Notices
- County government portals
- Auctioneers: Smith & Miller, Auction Mart Kenya
Q: Can foreigners buy auctioned buildings in Kenya?
A: Yes—on leasehold (up to 99 years). Must use a local company or advocate.
Q: Do auctioned properties have title deeds?
A: Most do—but always verify with an LSK advocate before bidding.
Q: Can I get a mortgage for an auctioned building?
A: Difficult—most auctions require cash or pre-approved financing. Some banks offer loans after purchase.
Q: What happens if I win but can’t pay?
A: You lose your deposit and may face legal action.
Final Word
Kenya real estate buildings auction is a high-reward, high-due-diligence investment path. With the right research, you can acquire prime commercial assets at discounted prices—ideal for rental income, redevelopment, or long-term appreciation.
