Ruto’s ally Lang’at saves Sh2.1b property from auctioneer’s hammer
By Winston Cheseremi Kenya, August 1, 2023
Eldoret businessman David Lang’at, a close ally of President William Ruto, yesterday stopped the auctioning of his multi-million shillings property over a Sh2.1 billion debt.
Langat’s multi-billion shilling tea estate in Nandi County and properties in Mombasa had been slated for auction yesterday and today.
Langat, popularly known as DL, is one of the people believed to have financially supported President Ruto’s campaigns and enjoys a close association with the Head of State.
According to an advert placed in the local dailies by Garam Investments Auctioneers three weeks ago, the two properties had been scheduled to be auctioned to recover a debt the businessman owes Stanbic Bank.
But yesterday, Garam Investments Auctioneers put up another advert cancelling the auction, catching interested buyers by surprise.
Sources told People Daily that Langat had successfully negotiated with Stanbic Bank on repayment modalities to save his multi-billion estate and property.
The auctioneer had put up Langat’s tea estate in Nandi and office blocks in Mombasa for auction to raise more than Sh2.1 billion owed to Stanbic Bank.
In the first auction that had been scheduled to be conducted yesterday in Mombasa, the auctioneer had hoped to raise Sh200 million from the sale.
Exclusive tea zone
Graham Investments had hoped to sell the expansive tea estate at Sh1.9 billion in the auction that had been slated for today at the auctioneer’s offices in Nairobi’s Westlands area.
The Koisagat Tea group of companies based in Nandi Hills comprises land measuring 1,342 acres, plants and machinery.
The auction notice stated that the land is developed with an exclusive tea zone for export-oriented commercial tea cultivation.
The estate also has 2.47 million tea bushes occupying 958.75 acres, 100,942 eucalyptus trees and 2,223 cypress trees.
“Other portions of the tea estate are under residential use (managerial houses and labour camps). Woodlots are periodically harvested to provide wood fuel to the tea processing,” the notice stated.
Langat is among the businessmen from North Rift that backed Ruto’s 2022 presidential bid.
He was recently named by the President to the National Investment Council and has invested in agribusiness, real estate, energy, and hospitality among others.