Bank of Baroda is facing mounting legal pressure after a bitter dispute with Infinity Industrial Park escalated from a loan disagreement into a fight over control of a multi-billion-shilling industrial project. The dispute dates back to a Sh 1.976 billion loan advanced to Infinity in 2019 to finance development of the industrial park along Nairobi's Eastern Bypass. Infinity says the project was disrupted by COVID-19, the 2022 election period, and delays by the bank in releasing land and documents needed to expand the project.
Bank of Baroda, however, maintains that Infinity defaulted and that it was entitled to exercise its rights as a secured lender. The bank failed to file its defence within the prescribed period, and on September 8, 2025, the High Court entered default judgment in favour of Infinity. The bank later sought to have the judgment set aside, but Justice Peter Mulwa dismissed the application on July 31, 2026.
The judge found that the bank had been given an opportunity to file its defence but failed to comply with court timelines. Bank of Baroda has since blamed its former lawyers, claiming they failed to properly inform the lender about the deadline. The bank's actions have led to a dramatic escalation of the dispute, with a warrant of attachment issued against its movable property to recover the money.
Days after the July ruling, the bank moved to place Infinity under administration. On August 10, 2026, Bank of Baroda appointed Ponangipalli Venkata Ramana Rao and Swaroop Rao Ponangipalli as joint administrators. Infinity accused the bank of using the administrators to take control of property that was already the subject of court orders.
According to court documents, the administrators entered the industrial park and took control of offices and records, affecting operations at the facility. Infinity challenged the takeover and sought to have Bank of Baroda's directors cited for contempt of court. Justice Mulwa later restored the status quo pending further directions, leaving the legality of the administration open for determination.
Infinity argues that the administration threatens its ability to enforce the nearly Sh 3 billion judgment it has secured against the bank. The dispute has now moved beyond the original loan, with Infinity Industrial Park established to host manufacturers and other businesses, supporting hundreds of workers and with room for further expansion.
Bank of Baroda maintains that Infinity remains indebted to it and that its rights as a secured creditor were not extinguished by the court proceedings. With a warrant of attachment now in place, the dispute has entered a new and potentially costly phase. The High Court will ultimately determine whether the bank's actions amounted to lawful enforcement of its security rights or breached existing court orders.
Key points
- A warrant of attachment has been issued against Bank of Baroda's movable property to recover Sh 2.996 billion.
- The dispute between Bank of Baroda and Infinity Industrial Park has escalated into a fight over control of a multi-billion-shilling industrial project.
- The High Court will determine whether the bank's actions amounted to lawful enforcement of its security rights or breached existing court orders.
