The company behind the hotel, Jacaranda Tree Holdings Limited was officially dissolved by the registrar of companies in a gazette notice dated February 19, 2021.
It was among 72 companies that were dissolved after a notice of intended dissolution for the firm was issued in October 2020.
When a company has dissolved, the liability of the directors, members, and officers ceases to exist.
The effect of dissolving a company is that property that was not distributed before the dissolution took place, vests in the state with effect from the dissolution date.
The Attorney General may, however, discharge such property by issuing a notice of disclaimer of ownership of the property.
Jacaranda Hotels is a Kenyan landmark hotel group and has been a symbol of quality and elegance over the years.
In addition to the Nairobi Hotel, there’s also the Jacaranda Indian Ocean Beach Resort, an exclusive luxury resort in Diani, and Jacaranda Lake Elementaita Lodge, adjacent to Lake Elementaita.
The multi-million hotel which is linked to the late cabinet minister Njenga Karume is currently in the process of being auctioned over debt accumulated over the years.
The hotel is set to be auctioned on March 12 after defaulting on a Ksh250 million loan.
The hotel, a 128-roomed facility, has been the subject of numerous legal battles between the family and the creditor, having survived an auction in January 2020.
It is reported that the hotel management took the loan and a further overdraft from a bank which is yet to be repaid.
â€œAll intending purchasers are requested to view and verify the details by themselves, a refundable deposit of Ksh5,000,000 must be paid to obtain a bidding number,â€ read a notice by the auctioneers.
The hotel’s management has also had run-ins with the state including a Ksh95 million tax arrears demand from Kenya Revenue Authority.
Karume died in 2012 after battling cancer leaving behind an estate estimated value of Ksh40 billion.