Court orders auction of Bank of Baroda assets to recover Sh 3 billion Infinity Park award

Bank of Baroda.[File, Standard]

The High Court has ordered the attachment and sale of Bank of Baroda’s movable assets to recover a Sh2.996 billion judgment awarded to Infinity Industrial Park.

Milimani High Court Deputy Registrar Stellah Sagwe on Tuesday issued a warrant of attachment directing Moran Auctioneers to seize the bank’s movable and attachable property after it failed to honour an earlier court order to pay Infinity Industrial Park Sh2.996 billion.

The warrant states that Bank of Baroda is required to pay Sh2,996,003,000, comprising the Sh2.996 billion decretal amount, Sh1,500 in further costs and another Sh1,500 as collection fees.

“By attachment and sale by public auction of all JD’s moveable and attachable goods to the extent of satisfying the decretal amount and costs,” the warrant states.

The auctioneer has been directed to hold the attached property until further orders of the court unless the bank pays the outstanding amount together with the costs of attachment.

Moran Auctioneers has also been ordered to sell the attached property by public auction after giving 15 days’ notice.

The warrant directs the auctioneer to return it to court on or before October 15, 2026, with an endorsement showing when and how it was executed or explaining why it had not been executed.

The latest development follows a decree issued by Justice Peter Mulwa on September 1, 2026, after Infinity Industrial Park withdrew several of the prayers in its original suit against the bank.

The court adopted the notice of withdrawal dated August 6, 2026, marking prayers seeking injunctions, release of land, additional financing, a further moratorium, withdrawal of adverse Credit Reference Bureau listings, general damages and other reliefs as withdrawn.

However, the court entered judgment for Infinity on its claim for special damages of Sh2.996 billion.

The dispute arose from a financing arrangement under which Bank of Baroda advanced Infinity about Sh1.976 billion in 2019 to finance development of an industrial park along Nairobi’s Eastern Bypass.

Court records show the facility was secured against several properties, including land in Njiru on which the industrial park was being developed.

Infinity sued the bank in June 2024, alleging that delays involving the release of portions of the charged property affected development of the project and its ability to generate revenue.

The company had sought, among other orders, an additional Sh650 million facility to develop a second cluster of 50 warehouses and release of another 15 acres to facilitate further development and financing.

The bank, however, disputed Infinity’s position and maintained that the loan had fallen into arrears and that it was entitled to retain the charged property as security.

The case took another turn after the High Court entered default judgment against the bank in September 2025.

Bank of Baroda subsequently sought to have the judgment set aside, arguing that its failure to file a defence was linked to its former advocates’ failure to communicate court orders allowing it to file the defence.

Justice Mulwa dismissed that application on July 31, 2026, finding that the bank had participated in the proceedings and had been given an opportunity to file its defence.

The judge held that the bank’s failure to comply with the court’s timeline was not attributable to absence of formal summons but amounted to non-compliance with a court order.

“The failure to comply with the Court’s timeline is not attributable to the absence of formal summons; it is simply a case of non-compliance with a court order,” Justice Mulwa ruled.

The bank has since returned to court seeking review of that decision, maintaining that the judgment exposes it to potentially severe financial and operational consequences.

The fresh attachment warrant now puts the Sh2.996 billion decree at the enforcement stage, with Moran Auctioneers required to act on the court’s orders and report back by October 15.