KCB to take over Kilimani apartments in Sh2bn row
KCB Bank has successfully placed Northcote Business Centre under administration following a dispute over a $16 million loan default. The High Court ruled in favor of the bank, noting that the firm violated escrow agreements by diverting rental and sales proceeds.
Why it matters
This ruling reinforces the rights of lenders to enforce security measures and take control of assets when borrowers breach loan covenants.
KCB Bank has been allowed to place apartment blocks owned by Northcote Business Centre under administration to recover defaulted $16 million (Sh2 billion) loans.
Northcote borrowed the sums from National Bank of Kenya and are part of the loan portfolio that KCB inherited after acquiring National Bank in October, 2019.
KCB appointed an administrator on December 4, 2025 who took possession of the apartments on December 16, 2025.
In court papers, KCB said it placed Northcote under administration after establishing that the real estate firm violated an agreement to deposit rent and sale proceeds in an escrow account held by the two parties.
Instead, KCB held in court that Northcote diverted sales and rent proceeds for several units to an account the real estate firm operates at Absa Bank.
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