This archive report was first published on 7 January 2020.
Blow for GT Bank as high court blocks the auction of Jacaranda Hotel ¶
Published on January 7, 2020
A Nairobi high court has dealt a significant blow to GT Bank by blocking the imminent sale and auction of the Jacaranda Hotel. The hotel, owned by the Njenga Karume estate, was put up for auction by Regent Auctioneers on behalf of GT Bank, which is demanding repayment of a Ksh 257 million loan.
However, Hon Lady Justice Wilfrida Okwany issued an injunction blocking the auction, citing that the estate had already honored part of the loan. The court ordered the estate to pay GT Bank Ksh 4.5 million as part repayment of the loan by January 10, 2020, failure to which the hotel will still face a public auction on January 22, 2020.
The judge also directed that any placement of auction advertisements in newspapers be stopped pending negotiations between the parties to come up with a solution by January 20th.
GT Bank had hoped to settle the loan from the proceeds of the sale, but the court's decision has put a halt to those plans. The Njenga Karume trustees are relieved after successfully being granted the injunction.
