Tycoon’s Construction Empire Crumbles as Assets Auctioned Over Sh861 Million Debt

Wealthy businessman Josiah Njoroge Njuguna’s construction empire is facing its biggest challenge yet, with his flagship company Nyoro Construction Company Limited’s assets heading to the auction block over an unpaid debt of Sh861 million to KCB Bank Kenya.

The financial institution has moved to recover its money by putting up for sale several prime properties belonging to the construction giant and its sister company, Asphalt Concrete Ltd. Philips International Auctioneers has scheduled the public auction for September 16, 2025, marking what could be the end of an era for one of Kenya’s most prominent road construction firms.

Among the properties earmarked for sale is the Light Industrial Complex located in Kyang’ombe area along Mombasa Road.

This substantial facility comprises six interconnected warehouses, a milling block, and a fuel shed, all sitting on approximately two acres of prime industrial land.

The complex currently houses the operational offices of both Nyoro Construction and Asphalt Concrete.

Also under the hammer is a 20-acre quarry site in Karagita area, Mihang’o, Nairobi County, registered under Asphalt Concrete Ltd.

The quarry, strategically positioned about 500 meters from Buru Farmers Road and 3.1 kilometers from the Eastern bypass, represents a significant asset in the construction materials supply chain.

The debt stems from multiple loans totaling Sh1.5 billion that KCB advanced to Nyoro Construction, using various properties as collateral.

The construction firm’s financial troubles have been compounded by what appears to be a cash flow crisis, despite claims that the government owes the company Sh1.5 billion for completed projects.

Njuguna’s companies mounted a desperate legal battle to prevent the auction.

Asphalt Concrete Ltd argued in court filings that their exposure was limited to Sh400 million and that Nyoro Construction had already paid Sh486 million, which should have discharged the guarantor’s liability.

The firm warned that the sale would cause “irreparable loss” to its real estate investments and have devastating effects on shareholders, employees, suppliers, and other stakeholders.

However, their legal strategy crumbled when Justice Aleem Visram dismissed the case on grounds of res judicata, meaning the matter had already been decided in a previous ruling.

The judge lifted a temporary order that had briefly halted the auction process, clearing the way for the sale to proceed.

The fall from grace is particularly striking given Nyoro Construction’s illustrious past.

During its golden years under the administrations of the late President Mwai Kibaki and former President Uhuru Kenyatta, the company secured lucrative government contracts worth billions of shillings.

Notable projects included the construction of Processional Road in Nairobi and the comprehensive repair and rehabilitation of Nakuru town roads.

Asphalt Concrete, which has operated for over four decades undertaking road projects across Kenya, now faces the prospect of losing its operational headquarters and key assets.

Director Dickson Wahome Njoroge expressed concerns about the company’s ability to continue operations if the auction proceeds, given that the properties house essential facilities shared with Nyoro Construction.

The situation reflects broader challenges facing Kenya’s construction sector, where delayed government payments and tight credit conditions have squeezed even established players.

For Njuguna, once considered among Kenya’s construction tycoons, the auction represents a dramatic reversal of fortune that could reshape the industry landscape.

As the September 16 auction date approaches, stakeholders across the construction sector will be watching closely to see whether last-minute interventions can save the empire that Njuguna spent decades building, or whether the hammer will fall on one of Kenya’s most recognizable construction brands.​​​​​​​​​​​​​​​​