The High Court has declined to grant interim orders sought by businesswoman Mary Wambui's company to suspend Equity Bank's administration of the luxury Glee Hotel, leaving the lender's appointed administrator in control as the parties battle over an outstanding debt of approximately Sh9.1 billion.
Justice Freda Mugambi refused to issue temporary orders after finding that the applicant had not established sufficient grounds to justify interfering with the administration process at this stage of the proceedings.
The judge said the court was only required to determine whether interim relief should be granted and could not delve into the substantive issues raised in the case before hearing all parties.
In her ruling, Justice Mugambi noted that there was no dispute that the company owed Equity Bank about Sh9.1 billion.
She further observed that the company had not contested that a consent judgment issued in Commercial Case No. E846 of 2025 had granted it additional time to settle the debt, but that payment had still not been made despite an extension.
The court also noted that the company had not challenged the validity of the debenture under which the administrator was appointed or the fact that the administrator had already taken over management of the hotel.
Justice Mugambi said no evidence had been presented to demonstrate that the administrator's assumption of office had disrupted the hotel's operations, adding that fears the administrator could run down the business remained speculative and unsupported.
The judge also found that the company's proposal to deposit Sh400 million as security was not proportionate to the outstanding debt of about Sh9.1 billion, although she acknowledged that such a payment would reduce the amount owed.
"Taking all these factors together, I decline to grant interim orders," the judge ruled.
She added that the administrator is an officer of the court and that the Insolvency Act provides mechanisms for judicial intervention should circumstances warrant such action.
The court directed that the respondents' preliminary objections be heard before the substantive applications.
Justice Mugambi ordered the respondents to file their responses and submissions first, followed by the applicant, with each side being given 10 days.
She limited composite written submissions to 15 pages and warned that any documents filed outside the prescribed timelines would not be considered.
The court scheduled its ruling on the two preliminary objections for July 23, 2026, after which it will issue further directions on the substantive applications.
The dispute stems from Equity Bank's decision to place Glee Hotel under administration after alleging that the company defaulted on loan facilities amounting to about Sh9.1 billion.
Mary Wambui's company moved to court seeking to stop the administration, arguing that it was willing to make a Sh400 million payment and preserve the hotel's operations while the dispute is determined.
Equity Bank opposed the application, maintaining that the debt is undisputed and that the appointment of an administrator was undertaken in accordance with the security documents executed by the borrower after efforts to recover the outstanding loans failed.
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