Stanbic Bank has won the legal battle to auction the Emani Centre, famously known as the former Jubilee Party headquarters, over a ballooning loan default.
The court’s green light follows multiple failed attempts by the building’s owner, Florence Wairimu Mbugua, to block the sale.
Mbugua had relied on rental income from key tenants, chief among them the Jubilee Party, but business crumbled after the 2022 elections.
Now, with a staggering Sh192 million debt and failed appeals, the bank is finally exercising its right to sell the property and recover its dues.
Jubilee Party Headquarters Faces Auction Hammer After Court Ruling
The High Court has ruled in favour of Stanbic Bank, allowing it to auction the Emani Centre, better known as the former Jubilee Party headquarters.
The decision marks the end of a drawn-out legal fight between the bank and property owner Florence Wairimu Mbugua over unpaid loans running into hundreds of millions.
Justice Peter Mulwa dismissed Mbugua’s fresh bid to block the auction, stating that her application was nearly identical to two previous ones already thrown out by the court in 2023.
Those earlier rulings had denied her the injunctive relief she sought to stop the bank from selling the building.
In his decision, Justice Mulwa noted that all three cases involved the same property, the same parties, and the same issue—whether the bank should be stopped from selling the building under its statutory power of sale. The court concluded that there was no new legal ground to justify halting the sale again.
Uhuru Kenyatta’s Jubilee Party Was the Anchor Tenant Before Exit
Florence Mbugua had staked the success of her real estate business on a steady stream of rental income. Among her key tenants was the once-powerful Jubilee Party, which occupied the Emani Centre during its time in power.
But things took a sharp turn after the 2022 general election. The party vacated the premises, and other tenants soon followed. Mbugua told the court that this mass exodus dealt a heavy blow to her finances.
The building, once bustling with political activity and steady rent, became a shell of its former self. She claimed the original loan from Stanbic Bank was approved based on the assumption that the property would continue to generate reliable income.
With tenants gone, those assumptions collapsed. Mbugua has since been trying to raise funds by subdividing and selling another property, Muringa Brothers Limited, but that process has taken longer than expected.
Still, the court was unmoved. The judge noted that Mbugua had failed to make meaningful repayments despite the bank offering repeated leniency.
As of April 2024, she owed Sh192.2 million, with Sh91.3 million already in arrears, excluding interest.
Bank Claims Repeated Defaults Justified the Auction
Stanbic Bank, through its recoveries and rehabilitation manager Amos Mugambi, argued that it had exercised patience over the years. It filed evidence showing that Mbugua had defaulted on her obligations despite numerous extensions and accommodations.
Mugambi said the bank had every legal right to act after years of failed repayments. He presented court rulings from February and May 2023 that had already dismissed similar applications from Mbugua, stressing that the bank was simply enforcing its statutory power of sale.
According to the bank, Mbugua had signed a charge instrument and agreed to the terms. When she failed to uphold her side of the deal, it was only a matter of time before legal enforcement became necessary.
The ruling now clears the path for auctioneers, agents, or receivers acting on behalf of Stanbic Bank to publicly sell the Emani Centre, along with all its developments.
Unless Mbugua finds a way to settle the full debt immediately, the former Jubilee Party headquarters will soon have a new owner.
Conclusion
The fall of the Jubilee Party headquarters mirrors the party’s waning political power. Once a symbol of authority and national governance, the Emani Centre now stands as a financial casualty.
Stanbic Bank’s court victory is not just a win for lenders enforcing contract terms but also a cautionary tale for property investors banking on high-profile tenants. When politics shift, so do fortunes—and this time, it cost Florence Mbugua her prized asset.
