Mary Wambui Loses Bid to Stop Equity Bank's Takeover of Glee Hotel
News Updated: 10 July 2026 23:16 EAT
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Businesswoman Mary Wambui has suffered a major legal setback after the High Court declined to suspend the administrator appointed by Equity Bank to take over the management of Glee Hotel, allowing the lender to proceed with the insolvency process as a court battle over the property's future continues.
The ruling leaves Kamal Anantroy Bhatt of Anant Bhatt LLP in control of the luxury hotel after Equity Bank placed the establishment under administration on July 6, citing unpaid debts amounting to Sh9.1 billion. The bank maintains that the outstanding loans were advanced to Mary Wambui and related entities and that previous attempts to recover the money had failed.
In her ruling, Justice Freda Mugambi found that the hotel had not presented sufficient grounds to justify suspending the administration. The court noted that the debt itself had not been disputed and that there was no evidence showing the administrator had interfered with the hotel's day-to-day operations since taking charge.
The judge also dismissed a proposal by Glee Hotel to deposit Sh400 million as security while the case is heard, saying the amount was significantly lower than the debt claimed by the bank and therefore insufficient to warrant the orders sought.
The court further observed that an administrator appointed under the Insolvency Act is an officer of the court and is subject to judicial oversight. Justice Mugambi said concerns that the administrator would mismanage the hotel were speculative and unsupported by evidence.
The dispute stems from a consent agreement reached in February 2026, under which Equity Bank agreed to accept Sh7.75 billion as full and final settlement of the debt through a refinancing arrangement. The refinancing, however, was never completed within the agreed timelines.
Following the collapse of the refinancing deal, Equity Bank moved to place Glee Hotel under administration instead of immediately exercising its rights to sell the charged assets. The bank argued that the move was intended to preserve the business while safeguarding the interests of creditors.
Mary Wambui had earlier obtained temporary relief after the High Court directed her to deposit Sh100 million within seven days to halt the bank's recovery action. The orders were conditional and lapsed after the required payment and refinancing process failed to materialise.
The administrator now assumes responsibility for managing the hotel's affairs, with the powers of the company's directors over its assets effectively suspended during the administration period in accordance with the Insolvency Act.
Glee Hotel, located in Nairobi's Runda area along the Northern Bypass, is one of Kenya's premier luxury hospitality establishments. The property has previously been valued at approximately Sh9.5 billion, making the dispute one of the country's largest hotel-related debt recovery cases.
The High Court has directed both parties to file submissions on preliminary objections before hearing the substantive application challenging the administration. A ruling on those objections is expected on July 23, 2026.
The case will determine whether Equity Bank's decision to place Glee Hotel under administration complies with Kenya's insolvency laws or whether the hotel can successfully challenge the lender's recovery process as the multi-billion-shilling dispute continues before the court.
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FELIX MAKONA
FACT FINDER AND DATA DRIVEN JOURNALIST. DATA MINING AT IT'S BEST. GET FACTS RANGING FROM MATTERS DISABILITY AND INCLUSION, POLITICS, ECONOMY, SPORTS AND GENERAL NEWS AROUND THE WORLD