Equity Bank Kenya has placed the luxury five-star Glee Hotel Limited under statutory administration following a prolonged multi-billion shilling loan default dispute. The regional financial institution appointed insolvency expert Kamal Anantroy Bhatt of Anant Bhatt LLP as the statutory administrator, effective July 6, 2026.
The corporate takeover immediately suspends the managerial powers of the hotel directors, transferring absolute operational control to the newly appointed administrator. According to formal court records, the luxury hospitality facility defaulted on massive corporate credit facilities totaling over KSh 8.2 billion.
The tier-one lender executed the statutory administration order to safeguard its financial assets and protect institutional stakeholders after multiple repayment deadlines collapsed entirely.The legal confrontation escalated significantly in June when High Court Judge Alfred Mabeya ordered the hotel’s prominent owner, businesswoman Mary Wambui Mungai, to pay a conditional KSh 100 million within seven days.
This temporary window sought to suspend an impending public auction of the strategic property, following a broken February 2026 consent agreement where the borrowers failed to clear KSh 7.75 billion.
“The bank moved forward with administration after exploring every available restructuring option to recover the outstanding multi-billion shilling facility,” stated an Equity Bank legal representative on condition of anonymity.
“The administrator will now manage day-to-day operations and engage directly with all verified creditors under the strict guidelines of the Insolvency Act.
“Situated in Nairobi, the premier 211-room property represents one of the region’s newest high-end hospitality investments.
Under Kenyan law, the statutory administrator assumes full responsibility for the company’s assets, business management, and future structural decisions. This comprehensive mandate remains active until the outstanding institutional debts are fully recovered or a sustainable corporate rescue plan is formally approved.
Legal analysts indicate that this prominent high-profile hospitality takeover signals a tightening credit risk environment among major East African commercial lenders facing non-performing corporate loans.
The administrative process will systematically determine whether the hotel undergoes extensive financial restructuring or a complete asset liquidation process. Moving forward, Bhatt must immediately evaluate the ongoing operational viability of the hospitality establishment while coordinating with suppliers, employees, and institutional creditors to preserve the company’s remaining commercial value.
Commercial courts will continue tracking the recovery progress closely as the administrator files statutory financial updates periodically to all relevant regulatory bodies across the country today.
