And they keep borrowing from international lenders to plug holes in their finances but can barely stay afloat

If they manage to borrow from international lenders, does it mean they are also misleading them too? Let us be objective here. We admit that they are also facing tough times as any other financial institution in Kenya. What they need look at urgently is the change of guard at the top to be able to bring in new ideas and focused management.

Recall also Chase Bank was borrowing heavily from international lenders just before they went under.Remember they were awaiting a 5 billion injection just before going into receivership.

As Pesa Nane puts, there is money to be made here for the brave ones. Once the market start's picking up & they manage to sell the available housing units thinges will change for this counter.

Pesa Nane- please allow me to comment on your optimism. You believe that the sale of Komarock will turn round the business so to speak. I did some extensive research on this. First of all the construction is mediocre. Leaking roofs, falling fittings and the kicker, flooded basements. Please visit the area when it is raining heavily. The prices are inflated given the location and the size of the units. Why you may ask? The subsidiary that does the construction has a huge amount of debt from the banking unit, see the balance sheets and this has exceeded CBKs cap resulting in external borrowing which is now limited. From insider sources and court documents that I reviewed, the contractor is the same contractor in most of the projects and receives unsecured lines from HFC for their very own construction! All this interest and of course side deals has forced the price to be higher than the market. The desperation is now being seen in their advertising, using Villa care for selling. Again this doesn’t make sense since they have their own real estate agency resulting in a cannibalizing structure. Finally, if you look at balance sheets of banks in other countries, lending to the real estate sector is done by special equity funds when margins are high. Why would you as a depositor be comfortable with a company which lends to this sector against other banks that lend short term secured facilities to commercial businesses that turn around the cash in a month.