By The Weekly Vision Business Desk
Businesswoman Mary Wambui Mungai has secured a significant legal reprieve after the High Court declined to strike out her suit challenging Equity Bank’s decision to place the five-star Glee Hotel under administration, paving the way for the multi-billion-shilling dispute to proceed to a full hearing.
The ruling means that while Equity Bank retains control of the luxury hotel through a court-appointed administrator, the bank’s bid to have the case dismissed at the preliminary stage has been unsuccessful. The court held that the issues raised by Ms Wambui warrant determination at a full hearing rather than being disposed of summarily.
The decision marks another chapter in one of Kenya’s most significant commercial disputes involving a luxury hospitality asset. The case stems from loans advanced by Equity Bank to Ms Wambui and companies associated with her to finance the development of the hotel, a 211-room luxury establishment in Nairobi’s Runda estate.
In February 2026, the parties recorded a consent before the High Court under which Equity Bank agreed to accept Sh7.75 billion as full and final settlement of the outstanding debt through a refinancing arrangement expected to be funded by KCB Bank. The agreement required the payment to be completed within 45 days.
However, the refinancing did not materialise within the agreed period, prompting Equity Bank to revive its debt recovery process. In June 2026, the High Court temporarily suspended the bank’s recovery efforts but ordered Ms Wambui to deposit Sh100 million within seven days as a condition for maintaining the interim protection.
When the deposit was not made within the stipulated period, the interim orders lapsed, allowing Equity Bank to exercise its contractual rights under the loan agreements. On 6 July 2026, the bank appointed insolvency practitioner Kamal Anantroy Bhatt as administrator of Glee Hotel under the Insolvency Act. The appointment transferred management and control of the hotel’s assets from its directors to the administrator, who assumed responsibility for operating the business while protecting creditors’ interests.
Ms Wambui subsequently returned to court seeking orders to suspend the administration and restore control of the hotel to its directors. Justice Freda Mugambi declined to grant the interim relief sought, finding that the existence of a substantial debt was not disputed, that the proposed Sh400 million security was insignificant compared with the amount claimed by the bank, that there was no evidence the administrator had disrupted the hotel’s operations, and that the Insolvency Act provides adequate safeguards should an administrator act improperly.
The latest ruling does not restore control of Glee Hotel to Ms Wambui. Instead, it allows her legal challenge to proceed after the court declined to strike out the suit at the preliminary stage. Equity Bank therefore remains in control of the hotel through the appointed administrator while the substantive issues await determination.
At the heart of the dispute is the amount allegedly owed to the bank. Ms Wambui maintains that the parties settled the debt at Sh7.75 billion under the consent agreement, while Equity Bank contends that following the collapse of the refinancing arrangement, the outstanding liability increased to approximately Sh9.1 billion.
The outcome of the case is expected to determine whether Equity Bank lawfully placed Glee Hotel under administration, the amount ultimately payable by the borrower, and who will retain long-term control of the valuable hospitality asset.
The decision is likely to be closely watched by Kenya’s banking, insolvency and hospitality sectors, as it could provide important judicial guidance on the enforcement of restructuring agreements, the exercise of lenders’ statutory powers under the Insolvency Act and the legal consequences of failed refinancing arrangements.
