Lloyd Masika, Stanbic probed over suspicious valuation

Kenya’s real-estate sector has been jolted by a ruling from the Nairobi High Court that pulls the curtain back on the workings of leading valuation firm Lloyd Masika Limited and its founder, businessman David Masika. The Milimani Commercial Court, presided over by Justice Aleem Visram, has ordered the company to hand over audited accounts, title deeds, bank statements and company books to Stanbic Bank Kenya within 21 days — as part of efforts to recover a KSh 58 million (approx US$386,000) judgment debt.

The case stems from a 2018 loan facility granted by Stanbic based on valuations produced by Lloyd Masika for three properties in Machakos County. The firm valued them at KSh 87 million (open market) and KSh 56.5 million (forced sale). When the borrower defaulted and the securities were reassessed, the properties were said to be worth only KES 17 million ($132,000) on the open market and KES 13.1 million ($101,000) on a forced sale — a gap of almost KES 70 million ($542,000).

Stanbic, left nursing a sharp loss, accused Lloyd Masika of gross negligence and submitting false valuation reports. An arbitrator in December 2021 held the firm liable for KSh 40 million in losses plus costs, bringing its total liability to KSh 44 million — but the bank is still chasing more than KSh 57 million.

In response, the company’s directors pushed back, contending the bank’s demand is premature while a separate insurance claim — backed by a KSh 500 million policy with UAP Insurance — is still pending. Justice Visram rejected that argument, saying the policy does not relieve the firm from disclosing its financial affairs.

The ruling marks a serious reputational blow for David Masika, a veteran of Kenya’s real-estate and valuation scene. An alumnus of the University of Nairobi in Land Economics and a registered valuer and estate agent, he co-founded Lloyd Masika in 1979 with John Lloyd and helped build its footprint to more than 1 million sq ft of commercial space and hundreds of residential units.