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Wakulima Flour Millers Limited has lost its bid to stop the Kenya Development Corporation (KDC) from selling its maize mill property in Donyo Sabuk over a debt the state lender puts at KSh301,659,045.
Justice B.W. Murunga of the Commercial and Tax Division dismissed the miller’s application for an injunction on 12 November 2026, clearing the way for KDC and Regent Auctioneers to exercise the statutory power of sale over LR No. Donyo Sabuk/Komarock Block 1/48363.
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Why Wakulima Flour Millers fell behind
The miller and director Solomon Gitundu admitted difficulties servicing the KDC loan. They blamed delays by the Ministry of Agriculture and Livestock Development in paying an arbitral award of KSh34,227,611.01 for maize flour supplied under the 2022 Sifted Maize Subsidy Programme, and said the milling business closed in April 2023. Wakulima Flour Millers argued that the 2019 valuation was done while KSh54,417,000 of the loan was still undisbursed and that a 2024 valuation was done without inspecting the site.
KDC replied that the borrower was in default, had ignored directions to resume monthly payments and could not seek equitable relief without “clean hands”.
Wakulima Flour Millers valuations compared
| Valuation | Date | Figure (KSh) |
|---|---|---|
| Original valuation (construction ongoing) | Aug 2019 | 106,000,000 |
| Crystal Valuers, for the miller | Sept 2025 | 220,987,000 market value |
| Cambrian Valuers, court-directed | Feb 2026 | 133,000,000 market; 99,750,000 forced sale |
The miller’s own valuation put KSh140 million on plant and machinery alone, saying the mill was relatively new. The court-directed report also gave a mortgage value of KSh113,050,000 and an insurance value of KSh106,000,000. It described land, a warehouse, offices, silos and a maize milling plant that was dormant at inspection.
What the court found
On 25 February 2026, the court recorded that the miller had deposited only KSh300,000, could not clear the arrears or service the debt, and had not met the conditions of an interim order, which was then vacated. A buyer for the mill had been identified, but the judge said there was no basis to conclude the deal “will be completed or resolve the outstanding indebtedness”.
The judge said business disruption alone does not make loss irreparable, since section 99(4) of the Land Act gives a remedy for an improper sale. Without “cogent evidence” of a breach of the lender’s valuation duty, the miller had no prima facie case. Costs were awarded against the applicants. The main Wakulima Flour Millers suit is still pending.
What it means for millers
The Wakulima Flour Millers case shows how delayed government payments can ripple through processors that borrowed to expand. Other maize sector stories include the KSh13bn Galana Kulalu maize deal and Unga Group’s latest results. Borrowers facing a sale can read our guide on how secured loans work in Kenya.
Frequently asked questions
Why can KDC sell the Wakulima Flour Millers property?
The court refused an injunction because the miller admitted default, did not meet the conditions of earlier orders and showed no breach of the lender’s valuation duty.
How much does Wakulima owe?
KDC says the debt stands at KSh301,659,045.06.
What is the property worth?
A court-directed valuation in February 2026 put it at KSh133m market value and KSh99.75m forced-sale value. The miller’s valuer put it at KSh221m.
Is the case over?
No. Only the injunction application was dismissed; the main suit is still to be heard.
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