Embattled Real estate firm Suraya Properties recently received a lifeline in the form of Sh1.6 billion from 4 local banks.
Will the firm which has recently been rocked by scandals make a comeback in the real estate scene?
The Kenyan real estate scene has been experiencing a lull in orders due to the influx of new housing units. The sector has been undergoing a slow moving bear market for some years now.
The interest cap law has led to a liquidity crisis as lenders prefer government bonds to lending to the sector.
The government is also set to enter the property market with cheaper residential housing projects.
Can the Muraya’s survive all this? The deck seems stacked against them. Peter and Sue Muraya the couple behind Suraya properties have a long way to go.
The couple, first came onto the Kenyan business scene with Tianshi products, a kind of multi-level marketing company dealing in Chinese herbal medicine that has been linked with unsavory business practices.
After that they went on to found Suraya Properties. Suraya was the toast of town for a while with colorful well publicized launches of multibillion shillings’ development projects.
For Suraya the good times kept rolling with cheap financing and a seemingly endless stream of investors.
They launched multiple projects including, Fourways Junction on Kiambu road, Encasa on Mombasa road, Spring Valley mall and business park in Westland’s, Lynx on Muchai drive, Tiara and Terrace in Lavington, Loanview apartments in Mombasa road, The Lynx Mbagathi and many more.
Then the interest cap law hit and financing cratered. The Muraya’s are now facing an array of allegations from their investors.
From poor workmanship on properties, to fraud linking them with non-issuance of title deeds, to not hitting the set timelines on completion of projects, to court cases over nonpayment of contractors.
Now they are faced with a bunch of lawsuits, unsatisfied contractors and angry investors.
Will the mercurial couple, who once made Suraya a much respected company rescue their fledgling firm and restore it to its former glory? Only time will tell.