Mediheal Hospital has suffered another setback after the High Court allowed Bank of Baroda (Kenya) Ltd to auction its property in Eldoret city over a debt of Sh173 million.
The court sitting in Eldoret lifted a previous order obtained by Mediheal Doctors Plaza Eldoret Ltd in May of last year, which had blocked the bank from proceeding with the sale. The court further declined to issue a permanent injunction preventing the auction, ruling that the bank had proved the hospital, which is associated with former Kesses MP Swarup Mishra, was in arrears and had been duly notified of the debt.
The court said the hospital had been properly served with statutory notices as required by law but had either ignored them or failed to take steps to repay the loan. Although the hospital acknowledged the debt, it disputed the claim that the notices had been served.
However, the court noted that the bank had provided proof of postage and was satisfied that the hospital had been properly notified.
“Being satisfied that the uncontroverted proof of postage has been availed by the respondents, I am satisfied that the applicants were properly served with the requisite notices,” the court stated. Mediheal Hospital has been facing major financial struggles, with its properties being auctioned due to growing debts. In November of last year, Bank of India (Kenya) was granted permission to sale another facility linked to the former MP over a debt of Sh701 million.
Ms Maryline Chepkosgei Langat, an official of the hospital, pleaded with the court to block the auction arguing that the hospital is a well-known medical facility.
She acknowledged the outstanding loans but argued that the hospital had been making efforts to service the debt, despite delays caused by challenging business conditions.
Ms Langat also noted that the hospital had received a letter dated March 24, 2025, from the bank stating the lender’s intention to auction the property on May 29, 2025.
However, she submitted that no prior notices had been issued before the advertisement for the auction was made.
She further argued that if the auction were allowed to proceed, the hospital would be left destitute, and that it would be only fair to halt the sale until the legality of the process could be determined.
In its defense, Bank of Baroda informed the court that several loans had been granted to the hospital secured by the property in question.
The bank also presented a 90-day statutory notice, dated April 5, 2024, which had been issued after the hospital was notified of its outstanding balance.
The court noted that the hospital had not contested the bank’s claims regarding the proper service of the requisite notices.
"Secondly, the court notes that the depositions made by the respondent in their replying affidavit regarding the service of the requisite notices were not rebutted, controverted, or denied by the applicants (Mediheal) through a further affidavit," the court stated.
