Infinity Industrial Park Limited has filed a complaint with the Central Bank of Kenya (CBK) against Bank of Baroda Kenya Limited, seeking a review of the lender's conduct before and during the company's placement under administration. This move comes after the High Court terminated the administration and ordered the restoration of Infinity's management, property, and records. The dispute between the two parties involves competing financial claims, with Bank of Baroda demanding roughly Sh2 billion from Infinity over loan obligations.
The High Court ruling delivered on September 24, 2026, by Justice Freda Mugambi set aside the appointment of joint administrators, citing that the insolvency process had been invoked improperly and as a collateral measure. The court found that significant financial claims between the two sides had yet to be resolved, making it impossible to determine whether Infinity ultimately owed Bank of Baroda a net amount or was unable to meet its debts. The judge consequently terminated the administrators' appointment and directed them to hand back Infinity's property and records.
Infinity has submitted the complaint to CBK alongside court rulings and other documents arising from its dispute with the bank. The company wants the regulator to examine the basis on which Bank of Baroda appointed the administrators, its management of the credit relationship, and its response to proposals concerning restructuring and repayment. Infinity has also asked CBK to scrutinize the bank's handling of requests for the partial release of charged properties.
The administration followed a broader commercial dispute between Bank of Baroda and Infinity, with the bank arguing that the company had fallen behind on its loan obligations. Bank of Baroda maintained that, as a secured creditor, it was entitled to enforce its security over Infinity's property. Separately, Infinity had secured a default judgment against Bank of Baroda in another commercial case, which the bank sought to have overturned.
The issues raised by Infinity are part of its complaint and are yet to be determined by CBK. The review, if undertaken, would be separate from the High Court proceedings and would concern the regulatory issues raised by Infinity in its complaint. Infinity is seeking CBK's independent assessment of the matters raised in its complaint and wants the regulator to consider whether any supervisory or regulatory measures are appropriate.
Bank of Baroda was directed to bear the costs of the application, expenses arising from the purported administration, and reasonable costs incurred in restoring the company. The CBK review would focus on the regulatory issues raised by Infinity, including whether the bank followed its internal governance, risk management, and legal review procedures before resorting to administration.
The dispute between Infinity Industrial Park and Bank of Baroda Kenya Limited highlights the complexities of commercial disputes and the role of regulatory bodies in overseeing lender conduct. The outcome of the CBK review will be closely watched, as it may have implications for the banking sector and the regulation of lender conduct in Kenya.
Key points
- Infinity Industrial Park Limited has filed a complaint with the Central Bank of Kenya (CBK) against Bank of Baroda Kenya Limited.
- The High Court terminated the administration of Infinity Industrial Park Limited and ordered the restoration of its management, property, and records.
- The CBK review will focus on the regulatory issues raised by Infinity, including whether the bank followed its internal governance, risk management, and legal review procedures.
