September 28, 2022

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Court stops bank of Baroda from taking over firm facilities over debt

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The High Court yesterday restrained the Bank of Baroda Kenya and two businessmen from taking over the operations of Thika Nursing Home and Thika School of Medical and Health Sciences over a Sh370 million debt.

 Justice Alfred Mabeya of the Commercial and Tax Division in Nairobi issued the temporary orders pending the hearing of the suit filed by the two institutions claiming that the Bank has taken over the two institutions and listed them with the Credit Reference Bureau (CRB).

 The Nursing Home and the School through lawyer Prof Tom Ojienda claim they have been taking loan facilities to expand its businesses and prior to March 2020, they were substantially compliant with all its loan obligations with the Bank.

 “After the pandemic, business became low as expected. As a result, the applicant started to struggle with repayment of its loan facilities.

 The disputes thus became inevitable,” says Dr Barham Dev Vasisht, the managing director of both institutions. The court has directed the application to be served upon the respondents within 14 days.

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