Equity Bank vs Glee Hotel Owner Mary Wambui: High Court Rejects Bid to Strike Out KES 8 Billion Case

The High Court has allowed businesswoman Mary Wambui Mungai’s legal challenge in the KES 8 billion debt dispute involving Equity Bank Kenya and luxury hotel Glee Nairobi to proceed after dismissing the lender’s application to strike out the case.

Justice Freda Mugambi ruled that Wambui was validly authorised to file the case on behalf of Glee Hotel after receiving approval from the company’s sole director, Evelyn Nyambura Mungai.

The judge found that Nyambura, who is the sole director of the high-end hotel, had legally granted Wambui authority to act on behalf of the company through a board resolution.

“The applicant contends that the objection has, by virtue of the board resolution, now been rendered moot. I note that no challenge has been mounted against Evelyn Nyambura Mungai’s authority, as sole director, to pass the said resolution,” Justice Mugambi ruled.

However, the judge noted that the original issue surrounding an alleged false averment in the case remained relevant and should not be treated as insignificant.

“I do not wish to be understood as treating the original false averment as a matter of no consequence,” she added.

Equity Bank and Glee Hotel Debt Dispute

The court case arises from a long-running financial dispute between Equity Bank Kenya and Mary Wambui Mungai over loans advanced to Glee Hotel and associated companies.

The dispute centres on billions of shillings in credit facilities issued by Equity Bank from 2020, with the loans linked to Wambui’s business interests, including Purma Holdings.

The facilities were secured through personal guarantees from Wambui and her daughters, as well as corporate assets, including the land and building housing the five-star Glee Nairobi hotel in Runda.

Wambui has attributed the repayment challenges to a liquidity crisis affecting her businesses. She stated that frozen bank accounts and restricted access to credit followed delays by the government in settling payments related to a rice supply contract with the Kenya National Trading Corporation (KNTC).

Failed KES 7.75 Billion Settlement Agreement

As the loans moved into default, Equity Bank and Wambui entered into a court-approved consent agreement on February 24, 2026.

Under the agreement, the bank accepted a discounted lump-sum payment of KES 7.75 billion as a final settlement of the outstanding debt. The amount represented about 85 percent of the total accrued debt.

The agreement provided Wambui with a 45-day period to secure refinancing through KCB Bank Kenya to settle the amount. However, the refinancing did not materialise within the agreed period after KCB’s due diligence and audit processes extended beyond the deadline.

Court Extensions and KES 100 Million Payment Requirement

After the 45-day period expired, Wambui returned to the High Court seeking additional time to complete the refinancing process. Equity Bank opposed the request, arguing that the court could not alter terms agreed upon by both parties.

On June 5, 2026, the court granted Wambui a seven-day window to pay KES 100 million directly to Equity Bank as a show of commitment and to temporarily halt an ongoing auction process involving the hotel.

Wambui did not meet the payment requirement within the stipulated period.

Equity Bank Places Glee Hotel Under Administration

Following the expiry of the court-granted reliefs, Equity Bank exercised its rights under the hotel’s debenture.

On July 6, 2026, the lender placed Glee Hotel under financial administration under the Insolvency Act. The bank appointed Kamal Anantroy Bhatt of Anant Bhatt LLP as the external administrator, resulting in the loss of management control by Glee Hotel’s directors.

The appointment gave the administrator authority over the hotel’s operations and assets as the lender pursued recovery of the outstanding debt.

Court filings during the dispute indicated that the amount claimed by Equity Bank, including accumulated penal interest, had risen to between KES 8.2 billion and KES 9.1 billion.

Wambui challenged the administration process, citing concerns over the impact on the hotel’s reputation and business relationships, including contracts involving corporate clients such as the World Bank.

The High Court, however, declined to remove the appointed administrator.