MP Chepkut on the brink of losing Sh110 million hotel over loan default

Ainabkoi Member of Parliament William Chepkut. [Peter Ochieng/Standard]

A member of the National Assembly from Uasin Gishu County might lose a Sh110 million hotel in Eldoret for allegedly defaulting on a loan.

Ainabkoi MP William Chepkut (pictured) is said to have defaulted on a loan he borrowed from a local bank, forcing the financial institution to instruct an auctioneer to sell his Royalton Hotel in a bid to recover the money loaned.

Yesterday, Watts Auctioneers said it will go ahead with the auction on April 12, claiming the MP had hitherto not shown interest in clearing about Sh10 million it owed the bank.

Royalton is a three-star hotel located off the Eldoret-Nairobi highway, at Oasis a few kilometres from Eldoret town.

“Auctioning of the hotel is still on course, unless he (Chepkut) has gone to the bank and paid the debt,” a Watts Auctioneers official only identified as Macharia yesterday told The Standard.

“We can’t rule out the possibility of mheshimiwa clearing the loan before April 12. But as it is, he has not paid and the property will just go under the hammer,” said Mr Macharia.

Interested buyers of the hotel comprising five related buildings, six cottages and a podium block are required to pay a Sh500,000 deposit ahead of the auction day.

“Eight serious buyers have deposited the requisite Sh500,000 and several other buyers have called the auctioneer, expressing interest in the property when the bidding goes down in Eldoret,” said Macharia.

But Mr Chepkut, who was an aide to former Keiyo South MP Nicholas Biwott (now deceased), admitted he owned Royalton Hotel, but angrily reacted to the bank’s move.

The MP yesterday threatened to sue the bank and the auctioneer to stop the planned auction.

“Yes, I have defaulted a bank loan and that does not mean that I have declined to repay the loan. Let them try to auction my property, we will meet in court,” a furious Chepkut told The Standard on the telephone.

He said he owed the financial institution Sh500,000.