KCB Group has assumed control of Mombasa’s English Point Marina, placing Pearl Beach Hotels under statutory management after the developer defaulted on a Sh5.2 billion loan. The bank appointed a receiver-manager to oversee asset sales, aiming to recover outstanding debts.
The luxury property, owned by Amin Kanji and associates, includes 96 apartments, eight penthouses, and a 26-room hotel. It was granted Vision 2030 Private Sector Flagship status, underscoring its role in Kenya’s development agenda. A photo of the site, taken on November 28, 2021, shows tourists enjoying the facility.
A source with knowledge of the matter confirmed KCB’s takeover, citing repeated loan restructuring attempts that failed. The receiver-manager will assess whether to sell parts or all of the property to recover debts, with proceeds distributed to other creditors after KCB’s claims are satisfied. This follows the 2015 Insolvency Act, which allows lenders to appoint receivers for pre-2015 loan contracts.
Legal disputes persist between Pearl Beach Hotels and buyers. A group of 12 purchasers alleges the developer denied access to apartments and imposed restrictive subletting rules. Court documents reveal claims of discriminatory practices against black African homeowners, including restrictions on servant access and disputes over service charges.
English Point Marina also faces criminal investigations into alleged fraudulent billing. A High Court judge dismissed a developer-led attempt to halt the probe, distinguishing it from civil cases over property access. Meanwhile, KCB is auditing unit buyers to determine ownership status and payment compliance.
The seizure reflects broader challenges in Kenya’s banking sector, where non-performing loans reached 14.1% in April 2022. Large corporate defaults, including English Point Marina’s Sh5.2 billion shortfall, contribute to rising bad debt ratios, prompting stricter lender interventions.
