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Court stops KCB takeover of Kwale spa over Sh5bn loan
Wednesday September 13 2023
Security guards outside the entrance of Pinewood Beach Resort and Spa in Galu Diani, Kwale County on August 3, 2023. PHOTO | SIAGO CECE | NMG
Kenya Commercial Bank (KCB) has suffered a setback after the High Court suspended its notice to appoint a receiver manager to run Pinewood Beach Resort and Spa in Diani, Kwale county over a Sh5 billion loan for constructing a luxurious property in Mombasa associated with the Kanji family.
Justice Kizito Magare restrained the receiver manager (Kamal Anantroy Bhatt) from taking over or in any way disposing, selling, or affecting Pinewood Beach Resort and Spa located in Kwale/Galu/Kinondo registered in the names of hotelier Alnoor Kanji and Gulshan Abdulmalik Kanji.
Read: KCB defends receiver for hotel in Sh5bn debt row
He also issued an injunction restraining KCB and Mr Bhatt from enforcing a debenture between the bank and Itco Investments Ltd against Pinewood Beach Resort and Spa.
Justice Magare issued the orders pending the hearing and determination of the case filed by Mr Kanji who is challenging KCB’s appointment of a receiver manager for his Pinewood Beach Resort and Spa in Diani.
Through lawyer, Nick Ndeda, Mr Kanji told the court that he does not owe KCB money and is not under any obligation to make payments.
KCB appointed Mr Bhatt as the receiver manager for Pinewood Beach Resort and Spa in relation to a Sh5 billion loan for the construction of the luxurious English Point Marina in Mombasa which is associated with the Kanji family.
“For the avoidance of doubt, this order relates only to Pinewood Beach Resort and Spa registered in the names of Alnoor Kanji and Gulshan Kanji,” said Justice Magare who directed the case to be fast-tracked.
During the hearing of the application, Mr Kanji told the court that he was not in default on any loan.
Through lawyer, Nick Ndeda, Mr Kanji told the court that he does not owe KCB money and is not under any obligation to make payments.
Read: KCB seizes English Point Marina over Sh5bn debt
Mr Ndeda told the court if the receivership is sustained, it will compromise the relationship the hotel has with its clients, staff, and suppliers, which will not be recovered.
