Stanbic Bank has received the court approval to auction the Emani Centre building, the former headquarters of the Jubilee Party, after its owner failed to pay an outstanding loan of Sh192 million.
The property owner, Florence Wairimu Mbugua, said the loan facility was based on the successful tenancy and rental income from the suit premises.
Among key tenants was the former ruling Jubilee Party, which vacated the premises shortly after the 2022 general election.
She said the rental business had been adversely affected when tenants surrendered their leases.
Ms Mbugua said efforts were underway to settle the outstanding debt by selling an alternative property, Muringa Brothers Limited, which was being subdivided.
She said that she was concerned that the process was taking longer than expected and wanted the court to intervene by halting the auction.
However, High Court judge Peter Mulwa said Ms Mbugua’s application to stop the auction was similar to two others filed in 2022 and 2023, which were dismissed by the court in 2023.
The fresh application was filed in March 2024.
This followed the submission of evidence by Stanbic Bank, including prior rulings by the court dated February 17, 2023, and May 31, 2023, in which similar applications for injunctive relief were dismissed by the court.
The evidence was presented by the bank’s manager for recoveries and rehabilitation, Amos Mugambi, through an affidavit.
“All three applications seek injunctive relief, principally restraining the bank from selling the land reference No. 209/1530 (IR No. 95209), also known as Emani Centre. The core issue in all the applications is whether the bank should be restrained from exercising its statutory power of sale over the suit property, which I find is substantially the same, involving the same parties and the same subject matter,” said the judge.
Ms Mbugua had sought an order barring the bank, together with its auctioneers, agents and receivers from selling the building or offering it for sale at public auction, together with all developments in it.
The bank opposed the application saying Ms Mbugua was in substantial arrears of Sh91.3 million, with an outstanding loan balance of Sh192.2 million as of April 2024, excluding accrued interest.
It stated that despite repeated indulgence, Ms Mbugua failed to make any meaningful repayment. The bank contended that Ms Mbugua, having defaulted on the terms of the charge instrument, did not merit the relief sought.
