A Kenya Supreme Court bench led by Deputy Chief Justice Philomena Mwilu ruled in October 2021 that a dispute involving a firm linked to Kamlesh Pattni and the Central Bank of Kenya (CBK) over the Laico Regency Hotel constitutes a matter of public importance. The court determined the case should proceed despite earlier dismissals in 1998 and 2008.
Malaysia-based Lynwood Development Limited, through its local agent Westmont Holdings, paid Sh185.5 million to the CBK in April 1997 as a 10% deposit for the Grand Regency Hotel. The property was later sold to Libya Arab Investment Company (Laico) and renamed Laico Regency, prompting Westmont to seek a refund of the deposit plus interest.
The CBK argued the payment was meant to settle a loan owed by Pattni, a central figure in the 1990-1993 Goldenberg scandal that cost Kenya $600 million. The regulator claimed no formal sale agreement existed and denied liability, urging Lynwood to pursue claims against Pattni directly.
The court emphasized the case's significance for investor rights, noting that requiring a Sh20 million deposit before hearing the appeal could hinder access to justice. With 12% annual interest, potential damages could reach Sh2.8 billion if the ruling favors the firm.
Westmont, which was wound up in May 2002, faced challenges over its legal standing. However, the court determined the issue of security for costs violated constitutional principles, allowing the case to proceed despite previous dismissals in 1998 and 2008.
