Court hands Glee Hotel owner lifeline in Sh8b Equity debt row

The High Court has handed businesswoman Mary Wambui a lifeline in the Sh8 billion debt row with Equity Bank.

Justice Freda Mugambi dismissed the bank’s application to strike out the case filed by Wambui to kick out Kamal Anantroy Bhatt from her Glee Hotel, arguing that she was not a director, hence had no authority to file the case.

Mugambi observed that it was clear that Wambui’s daughter Everlyn Nyambura had legally given her the power to sue on behalf of Glee.

Nyambura is the sole director of the high-end hotel.

“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. That notwithstanding, I do not wish to be understood as treating the original false averment as a matter of no consequence,” ruled Justice Mugambi.

At the same time, the judge dismissed Equity’s argument that the issues raised by Wambui in the case had been overtaken by events, following a consent judgment.

She said an insolvency case does not, per se, adopt the strict rules of civil cases. Instead, she observed that it is meant for the court to know that an administrator has been appointed over a company.

According to the judge, it is only when something happens within that the insolvency litigation turns into a contest between the parties.

In a rare but exclusive glimpse into expansive interests, including in estate and aviation, Wambui, who is said to be President William Ruto’s close ally, first used properties under Purma Holdings Ltd to secure loans for Glee Hotel, which has now been put under administration, and for Albatross Aviation Ltd.

Nevertheless, the loan relationship between her and the lender started sometime back on October 30, 2020, when she secured a project finance loan worth Sh3.5 billion.

In a detailed account of when the rains started beating her, she explained that the purpose of the loan was to pay off Sh2 billion in outstanding loans and the completion of the seven-star-rated hotel, spa and convention centre along Northern Bypass, off Kiambu Road.

Back to Purma Holdings, Wambui charged her Shelter Pride apartments, at Safari Park, to the tune of Sh240 million.

She also floated yet another property under Purma, for Sh75 million. In her explanation, the property would enable Albatross and Glee to borrow from Equity.

She then handed another property at Mogotio Road, Westlands, as collateral for Sh1 billion in favour of Glee and Purma.

Further, Wambui, through a deed of variation, handed the bank yet another property in favour of an increase of the loan to Sh3 billion. The businesswoman then had a personal guarantee of Sh22.,5 million over a sixth property and another one of Sh180 million using a title of a property in Ngong.

She added a seventh property in South B, worth Sh46 million. The three guarantees were to secure Glee’s loan.

Wambui then went flat out with her companies. She issued a Sh3 billion company guarantee using the Purma Group of Companies.

Under this, she has Purma Holdings, Charma Holdings Ltd, Enterprise Supplies Ltd, Haven Park Ltd, Albatross Aviation Ltd, Glee Hotel Ltd, Njest Supplies Ltd, Evertec General Trading, and Daydots Ltd.

As if the companies were not enough, Wambui, her two daughters, Purity Njoki and  Nyambura, issued personal guarantees and indemnities for the Sh3 billion.

Wambui also used her Kiambaa property, Ruitu, and 21 apartments in Thindigua, to the tune of Sh3.6 billion.

She also offered her companies as cross-default guarantees. In her court documents, Wambui alleges that she had paid Equity at least Sh2.5 billion to offset the principal amount and an additional Sh997 million in interest.

She indicated that the bank came calling on October 6, 2025, demanding around Sh7.4 billion from Glee. She said the bank had directed Tysons Ltd to value two pieces of land, which are registered under Glee.

 As a compromise, the court heard, she offered a global takeover of all facilities operated under Glee, Purma Holdings, Enterprise and Albatross by the Kenya Commercial Bank (KCB).

She stated that they had secured a syndicated loan, which would have enabled Glee to pay its debts by January 2026 and March 2026.

The court heard that Purma Holdings wrote to Equity, giving the lender an offer and full and final settlement of the loan facilities on the basis that Wambui was unable to pay the money owed because all her businesses were constrained from accessing credit facilities to actualise some of the agreements, which was hindering them from generating income.

At the same time, it emerged that Wambui had indicated that she could raise Sh7 billion, which was about 85 per cent of the amount the bank was demanding

Her interest was to settle two accounts held by Glee, two by Enterprise and one by Albatross. “ In response, the bank on November 20, 2025, gave conditions, including a detailed payment proposal as acceptance to her settling it.

In a further response, Wambui said she had a global takeover from KCB. She also sought to have a waiver of interests and penalties.

Equity then directed her to sort the issue by December 31, 2025.

What followed was an intention to auction Glee on February 5, 2026. Faced by looming sale, Wambui requested a 120-day waiver.

“Equity Bank Ltd denied that the credit facilities extended to Glee Hotel Ltd & the Associated Companies were called up prematurely and declined the request for waiver of interest and penalties.”

“The plaintiffs aver that the defendant’s actions are tactical, selective and oppressive. In particular, despite holding an extensive suite of securities comprising multiple legal charges, further charges, personal and corporate guarantees, cross-company indemnities, all-asset fixed and floating debentures and assignments of receivables over numerous high-value properties and corporate entities, the Defendant has deliberately elected to pursue enforcement solely against the property upon which the plaintiff’s flagship 7-Star Hotel development stands,” Wambui’s court papers read in part.

The businesswoman accused the bank of playing dirty, claiming that it threatened to sell other charged properties, guarantees, debentures, cross-company guarantees, and securities held as collateral.

She asserted that she had paid Sh100 million, which was meant to ward off the bank and was in the process of depositing Sh400 million when the bank put Glee under administration.

On the other hand, the bank argued that Wambui had admitted owing the bank at least Sh8.2 billion.

It also asserted that the court had no power to entertain the case as the admission followed a consent judgment which was binding on the parties.

According to Equity, Wambui agreed to pay Sh7.5 billion within 45 days, and in full, failure to which, it had the liberty to act to realise its rights.

Although it is Wambui who sued the bank, documents filed in court indicate that Nyambura is the sole director and shareholder of Glee. However, she authorised her mother to represent the hotel.

“For the avoidance of doubt, the authority hereby conferred upon Mrs Mary Wambui Mungai is an authority to act and to depose on behalf of the Company only, and does not

constitute her a director, officer or shareholder of the Company, the sole director and shareholder of the Company remaining Evelyn Nyambura Mungai,” the authority reads in part.