The High Court has allowed KCB Group and Absa Bank to seize assets of Savanna Cement Ltd over a debt running into hundreds of millions of shillings.
Justice Wilfrida Okwany declined the application by Savanna Cement that sought to block the two lenders from appointing an administrator or liquidating its assets to recover the debt.
Court filings show the cement maker has defaulted on the loan repayment and KCB said interest alone stands at KES 297 million plus a penalty of KES 13.5 million.
The judge said Savanna admitted the debt, which is quite substantial and banks are the parties on the receiving end as they are likely to suffer losses.
Nevertheless, Savannah Cement director Benson Sande Ndeta says the planned recovery was in breach of the company’s rights and a bid by the banks to unjustly enrich itself at the expense of its shareholders.
The company said it will suffer losses that cannot be compensated as the assets to be seized include machinery and land, which might never be recovered.