Kisumu, Kenya: Over 1,000 traders in Kisumu face auction or prosecution for failing to service their bank and Sacco loans amounting to more than Sh10 million.
The traders who were evicted from Oile Park last week, have expressed fear after various financial institutions made "alarming calls" over the defaults.
The traders say they lost over Sh20 million during the eviction that left them without space to sell their goods.
Speaking to The Standard yesterday, Oile Fish Traders Association Chairperson Doreen Owuor said they have been forced to camp outside the park to proceed with their businesses after they were allegedly denied access to alternative markets.
Grace periods
She said the traders owed three Saccos within the area over Sh800,000 and over Sh10 million to banks.
"Some members of our Saccos have reported that they have received calls from various banks that they have defaulted on payment of their loans," Ms Owuor said.
She said banks only give grace periods on loan repayments where the borrower has suffered personal injury, and for which a police abstract must be provided.
The traders have accused the police of denying them the documents since the eviction was approved by courts.
Owuor now says they may be auctioned by the banks as they cannot service their loans due to the disrupted activities resulting from the eviction.
ORIGINAL OWNERS
Most of the traders pay their loans weekly or fortnightly and the delayed resettlement is likely to harm their businesses.
The traders say their colleagues in the alternative markets have denied them access claiming ownership of the market spaces.
"We cannot force ourselves into the places they proposed if the original owners do not allow us in. Our efforts to meet our elected leaders to explain have also failed," said Charles Adaa, a trader at the park.
"The most amazing thing is that none of our elected leaders have bothered to come and find out why we are here and what should be done to help us find a place," Mr Adaa said.
Stay informed. Subscribe to our newsletter
Most of the traders are now selling their wares by the sides of major roads as they demand relocation to another site.
They say most of them have acquired loans as groups and separating them would derail the loan repayment strategy.
DIFFERENT LOCATIONS
"It will be difficult to harmoniously handle our activities as a Sacco if we are dispersed to different locations," Owuor said.
But in an interesting turn of events, the town may have to wait a little longer to do away with hawkers from the town centre after those evicted from Oile Park started slowly streaming onto major streets.
The bypass connecting Jomo Kenyatta Highway to Nairobi Road is now impassable as the hawkers have occupied it.
The fence along the Young Women's Christian Association offices has become filthy with waste from the fish and food kiosks.
The situation has since worsened and is likely to pose a health threat to the consumers and traders.
City Manager Doris Ombara has however held onto her directive that Oile Park be vacated to allow for its restoration.
The county officials had earlier proposed that the traders move to Maendeleo Market or the estate markets including Nyawita, Manyatta, Migosi, Kowino and Nyalenda.
The Standard Group Plc is a
multi-media organization with investments in media platforms spanning newspaper
print operations, television, radio broadcasting, digital and online services. The
Standard Group is recognized as a leading multi-media house in Kenya with a key
influence in matters of national and international interest.
join