Businesswoman Mary Wambui Mungai has suffered another setback in her attempt to halt Equity Bank’s administration of her luxury Glee Hotel in Nairobi, with the High Court declining to remove the lender’s appointed administrator.
Justice Freda Mugambi refused to grant interim orders sought by Glee Hotel Limited, leaving administrator Kamal Anantroy Bhatt in charge of the hotel as the company continues its legal battle with Equity Bank over an outstanding debt running into billions of shillings. The dispute arose after Equity Bank moved to enforce its security over the hotel following the company’s failure to settle loan facilities. The bank has put the outstanding debt at about Sh9.1 billion in earlier proceedings, while a more recent report placed the figure at more than Sh7.75 billion.
In the latest proceedings, Mary Wambui and Glee Hotel sought orders stopping Bhatt from exercising his powers under the Insolvency Act, effectively seeking to suspend the administration while their wider dispute with the bank is determined.
Justice Mugambi, however, held that the company had not demonstrated sufficient grounds for the court to interfere with the administration at the interim stage. The judge noted that there was no dispute that Glee Hotel owed Equity Bank approximately Sh9.1 billion. She also observed that the company had not challenged a consent judgment issued in Commercial Case No. E846 of 2025, which had given it additional time to clear the debt.
Despite the extension, the court noted that the debt remained unpaid. Justice Mugambi further found that Glee Hotel had not challenged the validity of the debenture relied upon by Equity Bank in appointing the administrator. Neither had the company disputed the fact that Bhatt had already assumed control of the hotel’s management.
The company had argued that placing the hotel under administration could interfere with its commercial operations and damage its reputation. Its lawyers told the court that publicity surrounding the takeover had caused some clients to reconsider their relationship with the hotel.
The judge, however, found that there was no evidence showing that the administrator’s assumption of office had actually disrupted the hotel’s operations. Concerns that the business could be run down under administration were, in the court’s view, speculative and unsupported by evidence.
Glee Hotel had also offered to deposit Sh400 million as security while challenging the administration.
Justice Mugambi found the proposed payment insufficient when compared with the outstanding debt, although she acknowledged that the amount would reduce the sum owed.
“Taking all these factors together, I decline to grant interim orders,” the judge ruled.
She further observed that an administrator is an officer of the court and that the Insolvency Act contains mechanisms through which the court can intervene if circumstances later justify such action.
The court directed that Equity Bank and the other respondents’ preliminary objections be dealt with before the substantive applications.
The respondents were ordered to file their responses and submissions first, followed by the applicant, with each party given 10 days to comply. The judge also capped composite written submissions at 15 pages and warned that documents filed outside the prescribed timelines would not be considered.
The court scheduled the ruling on the two preliminary objections for July 23, 2026, after which further directions would be issued on the substantive applications. Equity Bank has maintained that the debt is undisputed and that it exercised its rights under the security documents after previous efforts to recover the money failed.
Glee Hotel, on the other hand, has challenged the administration and argued that it should be allowed to preserve its operations while the dispute over the debt and the bank’s enforcement measures is determined.
The latest ruling does not conclusively settle the wider dispute between Wambui’s company and Equity Bank. It only allows the administration to proceed as the substantive issues continue before the court.
For now, Bhatt remains in control of Glee Hotel under the administration process, while Wambui and the company pursue their legal challenge.
