Mary Wambui Fails to Eject Administrator From Glee Hotel Over Sh7.75bn Debt

Businesswoman Mary Wambui Mungai has failed in her latest attempt to remove an administrator appointed by Equity Bank to run her luxury Glee Hotel in Nairobi.

The administrator, Kamal Anantroy Bhatt, was appointed after Equity Bank moved against the hotel over a debt that the lender says has grown to more than Sh7.75 billion. The latest court decision leaves him in control of the hotel.

The dispute is part of a wider battle between the bank and Glee Hotel Limited over the lender's recovery of money owed to it. Equity took control of the hotel through administration in July after the debt remained outstanding.

Wambui and the hotel had challenged the administration, seeking orders that would effectively remove Bhatt and prevent him from exercising his powers under the Insolvency Act.

The court has now declined that request, allowing the administration process to continue as the underlying dispute is considered.

The development follows an earlier ruling in July in which the High Court declined to suspend Equity Bank's takeover of the hotel. At the time, the court noted that Glee Hotel had not disputed the existence of an outstanding debt claimed by the bank.

The bank's claimed debt has previously been reported at about Sh9.1 billion, although the latest Business Daily report puts the amount at more than Sh7.75 billion. The difference reflects figures cited at different stages of the dispute.

In the earlier proceedings, Glee Hotel had offered to deposit Sh400 million while challenging the administration. The court found that the proposed payment was not proportionate to the debt claimed by Equity.

The hotel had also argued that the administration was affecting its commercial operations and reputation. Its lawyers told the court that publicity surrounding the takeover had caused some clients to reconsider their relationship with the establishment.

The court nevertheless declined to stop the administration, noting that an administrator is an officer of the court and that the Insolvency Act provides mechanisms for intervention if circumstances later require it.

Glee Hotel is a five-star property in Nairobi associated with Wambui. The hotel has been at the centre of the dispute since Equity Bank began enforcement action over the outstanding debt.

The latest decision does not finally determine the wider dispute between the hotel and Equity Bank. Instead, it allows the administration to continue while the court deals with the substantive issues raised by the parties.

For now, Bhatt remains responsible for managing the hotel under the administration process, while Wambui and the hotel continue their legal challenge.

The case highlights the powers available to lenders when large commercial debts remain unpaid and the role of administrators in taking control of distressed businesses while creditors pursue recovery.