NAIROBI, Kenya, Aug 20 – Co-operative Bank of Kenya has issued a 40-day statutory notice indicating its intention to sell a property belonging to South Nyanza Sugar Company (Sony Sugar) over an outstanding debt of Sh862.3 million.
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.
The notice is anchored on provisions of the Land Act, 2012, which set out the process lenders must follow before selling charged property when a borrower remains in default.
Co-operative Bank said Sony Sugar owed it Sh862,328,980.41 as of July 14, 2026 in respect of a lending facility.
“As you are fully aware and despite the notice mentioned above, you have not rectified the default, and you owe the Bank the sum of Kes. 862,328,980.41 as of 14th July 2026 in respect of a facility granted to South Nyanza Sugar Company Limited,” the bank said.
The lender said it would proceed with the sale of the property after expiry of the 40-day period unless the company rectifies the default and settles the outstanding balance in full.
The notification refers to an earlier statutory demand notice dated August 13, 2025, commonly known as a 90-day notice, which the bank said was issued after Sony Sugar allegedly failed to remedy the default.
According to the notification, the lending facility is secured by a legal charge over L.R. No. 16339/1, which is registered in the name of Sony Sugar. The facility is also backed by a First Ranking All Asset Debenture in favour of Co-operative Bank.
The bank said any repayment arrangements or payments made after the latest notice would be accepted on account but would not affect its right to enforce the security.
“Please note that any repayment arrangements entered into between yourselves and the Bank and/or any payments made by you after the date of this notice shall be accepted by the Bank strictly on account and without prejudice to the Bank’s right to proceed and realize its securities as aforesaid,” it said.
Under the Land Act, a lender may exercise its statutory power of sale after issuing the required notices where a borrower remains in default.
