Kenyan businesswoman Mary Wambui loses bid as Equity Bank moves to seize Glee Hotel over $70 million debt

Kenyan businesswoman Mary Wambui Mungai has lost her attempt to block Equity Bank’s takeover of the luxury Glee Hotel, after the High Court declined to suspend the lender’s appointed administrator in a dispute over a Ksh9.1 billion ($70 million) loan.

The decision clears the way for Equity Bank to retain control of the Nairobi-based property, marking a significant step in the ongoing legal battle between the lender and Wambui’s company over the outstanding debt.

Court backs Equity Bank’s enforcement action
In her ruling, Justice Freda Mugambi dismissed the application for interim orders, stating that the borrower had failed to establish sufficient grounds to justify interfering with the administration process.

The court emphasized that its role at this stage was limited to determining whether temporary relief should be granted, not to assess the full merits of the case. It further noted that the debt owed to Equity Bank was not disputed and that the validity of the debenture used to appoint the administrator had not been challenged.

Despite a prior consent judgment granting additional time for repayment, the borrower had not made any settlement toward the outstanding loan.

Debt dispute weakens borrower’s position
The court also rejected claims that the administrator’s presence would disrupt hotel operations, citing a lack of supporting evidence.

Wambui’s proposal to deposit Ksh400 million ($3.1 million) as security was deemed insufficient compared to the total debt of approximately Ksh9.1 billion ($70 million), although the court acknowledged it could reduce the outstanding balance.

Justice Mugambi underscored that administrators act as officers of the court and remain subject to oversight under the Insolvency Act, providing safeguards against potential abuse.

Legal battle shifts to next phase
The court directed that preliminary objections raised by the respondents be heard before the substantive application proceeds. Both parties have been given strict timelines to file submissions, with written arguments capped at 15 pages. A ruling on the preliminary objections is scheduled for July 23, 2026, after which the court will issue further directions on the case.

The dispute stems from Equity Bank’s decision to place Glee Hotel under administration following an alleged default on loan facilities. While Wambui’s company argued it was willing to make partial payments and continue operations, the lender maintains that enforcement actions were carried out in line with agreed security terms after efforts to recover the debt failed.

The outcome reinforces Equity Bank’s position while signaling a broader trend of stricter enforcement of corporate debt obligations in Kenya’s financial sector.