High Court Allows Sh173 Million Auction of Mediheal Asset as Debt Pressures Mount
Mediheal Hospital has suffered another legal setback after Kenya’s High Court in Eldoret allowed Bank of Baroda (Kenya) Ltd to auction one of its properties to recover a Sh173 million debt, adding to mounting financial strain on the healthcare group.
Justice E. Ominde lifted an earlier temporary order that had blocked the sale of Eldoret Municipality Block 8/827, declining to grant a permanent injunction sought by Mediheal Doctors Plaza Eldoret Ltd.
The judge found that the lender had demonstrated the hospital was in arrears and had been properly served with statutory notices before initiating the recovery process.
The ruling clears the way for the bank to proceed with the sale of the property in Eldoret, western Kenya, in a bid to recover the outstanding balance.
Court Finds Proper Notice Was Issued
The dispute centered on whether the hospital had been duly notified of the intended auction. While Mediheal acknowledged the existence of the debt, it challenged the service of statutory notices required under Kenyan law before a property sale.
The court held that the bank had provided proof of postage and was satisfied that proper notification had been made. The judge noted that the borrower either ignored the notices or failed to take steps to regularize the loan despite being aware of the arrears.
Hospital official Maryline Chepkosgei Langat had urged the court to halt the auction of Mediheal asset, citing the facility’s standing in the region and ongoing efforts to service the loans amid difficult business conditions. She also referred to a March 24, 2025 letter from the lender indicating its intention to auction the property on May 29, 2025.
The court, however, found no basis to restrain the lender from exercising its statutory power of sale.
Part of Wider Debt Pressures
The latest ruling adds to a series of adverse court decisions facing the Mediheal Group of Hospitals, which has been associated with former Kesses Member of Parliament Swarup Mishra.
In November last year, the High Court granted Bank of India (Kenya) permission to auction other properties linked to the group over a separate Sh701 million debt.
In January 2026, the hospital lost a bid to stop the attachment and sale of its medical equipment after a related suit was dismissed for want of prosecution.
Separately, in June 2025, the hospital was ordered to pay more than Sh300 million in salary arrears and damages to former employees for unfair termination, further compounding its liabilities.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
