Co-op Bank to sell Sony Sugar property over Sh862mn debt
In a notification dated July 14, 2026 and addressed to the company's Chief Executive Officer, the bank said it would exercise its statutory power of sale over Land Reference No. 16339/1 unless Sony Sugar clears the outstanding amount within 40 days of being served with the notice.
Nairobi, Kenya (Aug 20) – Co-operative Bank of Kenya has given a 40-day statutory notice to South Nyanza Sugar Company (Sony Sugar) to sell a property valued at Sh862.3 million due to an outstanding debt. In a notification dated July 14, 2026, the bank stated it would exercise its power of sale under the Land Act, 2012, unless Sony Sugar settles the debt within the 40-day period.
Sony Sugar is reportedly in default on a lending facility of Sh862,328,980.41, for which the bank has a legal charge and a First Ranking All Asset Debenture. The bank will proceed with the sale after the 40-day period if the default is not rectified. Any payments made after the notice will be accepted on account, but Co-operative Bank reserves the right to enforce its security as per the Land Act provisions.
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