The Star Publication Limited has found itself in a precarious situation as it faces the possibility of an auction due to its failure to settle rent arrears for its newspaper printing plant located at Kay Complex along Mombasa Road.
In documents served to the plant’s officials on Tuesday, it was revealed that The Star owes rent arrears amounting to Sh1,736,231.17 to Kay Constructions Company Limited.
Skypac Auctioneers, acting on behalf of the landlord’s legal representatives, visited the plant on Tuesday with the intention of levying distress of rent. However, officers at the plant declined to sign the documents.
A letter dated September 18, 2023, signed by Noel Ngoloma Okwach of Okwach & Company Advocates, stated, “We refer to the above matter wherein we act for Kay Constructions Company Limited. We have been instructed to issue instructions to you to proceed and levy distress of rent as against the above referenced tenant who is in arrears of rent of Kshs.1,736,231.17/- as per the attached schedule.”
The Star entered into a tenant agreement with Kay Constructions Company Limited on October 21, 2021, to occupy the mentioned godown. The lease agreement was signed by lessors Kanji Kunverji Patel and Dhanbai Kanji Kunverji on one side, and Patrick Quarcoo and William Pike as lessees on behalf of The Star.
A total of 16 items, including production and printing machines, as well as motor vehicles, have been attached by the auctioneers. These assets are set to be sold off if the rent arrears are not settled within 14 days.
The Star Publication Limited is owned and operated by the Radio Africa Group, which also operates Kiss 100 fm, Classic 105 fm, East Fm, Radio Jambo, Smooth FM, and Kiss TV.
