Businesswoman Mary Wambui Mungai has suffered another setback in her legal battle with Equity Bank after the High Court declined to suspend the administration of her luxury Glee Hotel in Nairobi.
Justice Freda Mugambi rejected interim orders sought by Glee Hotel Limited, allowing administrator Kamal Anantroy Bhatt to continue overseeing the hotel as the company challenges Equity Bank over an outstanding debt running into billions of shillings.
The dispute began after Equity Bank moved to enforce its security over the hotel following the company’s failure to repay loan facilities. The bank had previously placed the outstanding debt at about Sh9.1 billion, while a more recent report put the amount at more than Sh7.75 billion.
Wambui and Glee Hotel had asked the court to stop Bhatt from exercising his powers under the Insolvency Act. They wanted the administration suspended as they continued with their wider dispute against the bank.
However, Justice Mugambi said the company had not provided enough grounds for the court to interfere with the administration at this stage. The judge noted that there was no dispute that Glee Hotel owed Equity Bank about Sh9.1 billion.
The court also noted that Glee Hotel had not challenged a consent judgment issued in Commercial Case No. E846 of 2025, which had given the company additional time to settle the debt. Despite the extension, the money remained unpaid.
Justice Mugambi further observed that the company had not challenged the validity of the debenture used by Equity Bank when appointing Bhatt as administrator. She also noted that there was no dispute that Bhatt had already taken control of the hotel’s management.
Glee Hotel had argued that the administration could affect its business operations and reputation. Its lawyers said publicity surrounding the takeover had caused some clients to reconsider their relationship with the hotel.
The judge, however, found no evidence that the administrator’s appointment had disrupted the hotel’s operations. She said claims that the business could be damaged under administration were speculative because they were not supported by evidence.
The company had offered to deposit Sh400 million as security while challenging the administration. Justice Mugambi found the amount too small compared with the outstanding debt, although she acknowledged that it would reduce the amount owed.
The judge also noted that an administrator is an officer of the court and that the Insolvency Act provides ways for the court to intervene if circumstances later require it.
For now, Bhatt will remain in control of Glee Hotel as the legal dispute continues. The court directed Equity Bank and other respondents to deal with their preliminary objections before the substantive applications are considered.
The latest decision does not bring the wider dispute to an end. It only means that the administration will continue while Wambui and Glee Hotel pursue their legal challenge against Equity Bank.
