Billionaire's billion woes }}} Bank seizes TSS to recover Sh1bn bad loan

News & Politics
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Kenya Commercial Bank has taken over a milling company owned by Mombasa tycoon Tahir Sheikh Said, also known as TSS.

The bank said it had seized the milling firm after it defaulted on a Sh1 billion loan.

KCB, which has in excess of Sh1 billion non-performing loans with Tahir Sheikh Said (TSS) Unga Millers, issued a notice in May, indicating that it had taken over the running of the miller.

“Notice is hereby given that the above company was placed under administration by Kenya Commercial Bank Limited on May 30, 2016,” the bank said in a recent statement. “None of the directors, shareholders, employees and no other person is authorised to transact any business on behalf of the company without express written consent from the administrator.”

TSS has defaulted on loans in excess of Sh2.7 billion associated with TSS Unga Millers.

The businessman is said to have Sh8 billion in non-performing loans with several banks booked under other subsidiaries in his business empire.

KCB declined to comment on the matter, citing customer confidentiality but sources within the bank said that the bank would dispose of a prime piece of land in Mombasa that the billionaire had charged as security for the loan.

A Wealth in Kenya report for 2014 listed Mr Said as one of the largest land owners in the country.

His fortunes, however, seem to have taken a turn for the worse after the government cancelled title deeds to large tracts of land in Lamu County that were associated with him. Some of the land is said to have been used to secure loans in excess of Sh5 billion from two banks that are listed on the stock exchange.

HE DEFAULTED

The businessman is known to have defaulted on at least Sh1.4 billion loans with NIC Bank and Sh300 million with National Bank.

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Damn!!! This son of a bitch is wealthy to be given such huge loans. Wengine hata kupewa 500k ni shida :D:D:D:D

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There are very few astute businessmen in Kenya. Wengi ni Highway robbers who plunder govt coffers and live the rest of the lives propping govt to protect the wealth and the perennial robbery. Get them out of govt. protection and procurement and their empires collapse

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Can’t pay or won’t pay.

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source?

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Its so sad that these guys still die poor

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Its more complicated than that.

TSS, together with Butt of Modern Coast had been implicated in the funding of the Al kabaab boys who were exploding grenades in Mombasa.

After Butt was taken out, the authorities trained their eyes on TSS. TSS realized that his life was in imminent danger, and went completely underground.

The long term effect of this was that he lost the direct control of his empire and instead the same was haphazardly entrusted to his immature children.

Meanwhile, the niccur is married to two wives, and the offspring of each mwoman don’t see eye to eye.

During the time he was underground, things got very bad, to a point that some of the kids decided to dispose off some assets, whilst the others did not want.

In one interesting development that I was involved in, some of the children entered into a sale agreement to dispose off one prime land in shimanzi. Before the sale could be actualized, the other group charged the property for almost 0.5B, and disappeared with the money. Nothing was invested back.The case is pending in a Mombasa court between the intended purchaser and TSS grain Millers.

Today, TSS Grain Millers is closed, maize suppliers and brokers are demanding dues running to millions of shillings and all Fuso and canters are rotting away in the yard. The milling plant was the tycoons most profitable business, considering that after the Islam brothers who own Mombasa Maize Millers, the Bajabers who own Kitui and Pembe Maize Millers, TSS was the third in the highly lucrative market

Meanwhile, Omar, the most famous of TSS children and his siblings got hold of the transport division, TSS Bus and others, and refused to let go. He is also the owner of the high end Cafe Arabica’s in Mombasa.

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eish @kingolonde! wewe ni nsis?

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Na kweli watu know things hia

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Sanda Mkamba.

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That’s why we are number 1, your contribution and criticism included.:wink:

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Unga Millers ikianguka hiyo asara itakuwa kubwa sana

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The whole biz is Kes. 8B in the red.

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In a year or two jimmy wanjigi will be in the same predicament as he is already suffering. Don’t bite the hand that feeds you especially if your leverage started with the previous regime and you are attacking the current regime. That leverage is just stopped the doors shut everywhere. The coast drug barons are having it rough, the smugglers using N.E Kenya are having it rough. KRA is also hot in their heels to recover taxes they owe personally, their properties and businesses. Meanwhile NIS is dealing ruthlessly with the thugs that they fund to hit back on the government. Within months they are accumulating debts and a year or two the house of cards falls apart.

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@spear Not everything is politics. The business community is suffering generally due to the current opus dei governor. Before, the banks were very lenient and very flexible on business loans. You could argue your case and the bank was more than willing to extend your loan payments as long as you paid the interest,high risk yes but it used to work. Now enter the new governor and he is in every banks case, who in turn are exerting the pressure to their clients.

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That is also true, they get loans like most businesses for operational expenses but they have relied on the deals, some open and some illegal to fund the business at start up or expansions. Now those deals are no more and they suddenly are unable to sustain themselves through debt and organic growth.

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This whole scenario can make a block buster bongo movie.

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what happens when you go against the jinis you have for prosperity.

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An other angle! Hehehe!