KCB wins fight to auction Cytonn hotel in Sh425m row
The Kenyan High Court has authorized KCB Group to auction the Cysuites Apartment Hotel to recover a defaulted loan of Sh425.6 million. The court ruled that Cytonn Investments, as a shareholder, lacks the legal standing to block the sale of property owned by Wasini Resorts.
Why it matters
This ruling clarifies legal boundaries for shareholders in debt recovery cases and impacts the ongoing liquidation of Cytonn's investment vehicles.
The High Court has cleared KCB Group to auction Cysuites Apartment Hotel, a luxurious serviced apartment hotel owned by Cytonn Investments, over a defaulted Sh425.6 million loan.
Justice Fridah Mugambi said that Cytonn had no legal standing to block the bank from auctioning the property because the registered owner is Wasini Resorts Ltd.
The investment firm challenged the sale as a shareholder in Wasini Resorts Ltd through Cytonn Investment Partners Twenty LLP.
But the court ruled that a shareholder cannot stop a lender from enforcing security over land owned by the borrowing company.
The court row also sucked in the government official receiver, which had frozen several assets, including Cysuites Apartment Hotel, in the race to recover more than Sh14 billion owed to about 4,000 investors.
Cysuites, which is located on Church Road, Westlands, Nairobi and registered under Wasini Resorts, has six blocks with serviced apartments.
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