Table of Contents
Key Points
- A Nairobi court has allowed Credit Bank to sell a stalled skyscraper project to recover Ksh1.2 billion ($9.3 million) in outstanding debt.
- The court lifted an injunction blocking the sale, dismissing appeals from borrowers Jabavu Village Limited and Hasscon Pharmaceuticals Limited.
- Despite new investors, the Nyachae family remains Credit Bank’s largest shareholder, with 27.1% ownership through Sansora Group.
Credit Bank, a Nairobi-based commercial bank partly owned by the family of the late Kenyan politician and businessman Simeon Nyachae, has received approval to sell a stalled skyscraper project in Nairobi’s Upper Hill area over an outstanding Ksh1.2 billion ($9.3 million) debt.
The High Court in Nairobi, in a ruling on Feb. 24, granted the lender the right to proceed with the sale of the land, which had been earmarked for Africa’s tallest building. The decision comes after a legal battle with Jabavu Village Limited and Hasscon Pharmaceuticals Limited, which had borrowed the funds.
Court lifts injunction, allows sale
The sale had been blocked since 2023 when Jabavu Village Limited obtained an injunction against Credit Bank’s planned auction. However, High Court Judge Alfred Mabeya lifted the injunction on Jan. 27, clearing the way for the lender to reclaim its funds.
Despite an earlier ruling on Jan. 31 by Justice Peter Mulwa issuing a temporary injunction against the sale, the High Court’s latest decision dismissed the borrowers’ appeals, allowing Credit Bank to exercise its statutory power of sale.
“Consequently, the applicant's motions dated Jan. 30, 2025, and Feb. 7, 2025, must fail. The same are hereby dismissed with an order that the costs thereof be in the cause. The first respondent is at liberty to proceed and exercise its statutory power of sale,” Justice Mulwa ruled.
Credit Bank’s ownership
Founded in 1986, Credit Bank has been expanding its position among Kenya’s medium-sized commercial banks. As of June 30, 2024, it reported total assets of Ksh27.71 billion ($214.1 million) and shareholders’ funds amounting to Ksh3.95 billion ($30.5 million), though it carried a retained loss of Ksh1.21 billion ($9.35 million).
The bank strengthened its financial position in 2023 by onboarding Shorecap III, LP as a shareholder. The investment firm acquired a 20 percent stake in Credit Bank on June 15, 2023, following regulatory and shareholder approvals. The Nyachae family remains the largest stakeholder with a 27.1 percent interest through its holding company, Sansora Group.
Nyachae family’s continued influence
Grace Nyachae, widow of Simeon Nyachae, plays a significant role in the bank’s strategic direction as a founding director.
With an extensive background in financial services and business management, she sits on multiple boards, including Horticultural Crops Development Authority (HCDA), Sotik Tea Company Ltd., and Sansora Group of Companies.
The sale of the stalled Nairobi skyscraper project marks a significant legal victory for Credit Bank, allowing it to recover substantial funds while reinforcing its financial standing in Kenya’s banking sector.
