Infinity Industrial Park Limited has taken Bank of Baroda to the Central Bank of Kenya, demanding a regulatory probe into the bank's conduct. The move comes after the High Court ruled that the bank's decision to place Infinity Industrial Park under administration was an "improper and collateral invocation of statutory insolvency powers." The court set aside the appointment of joint administrators over the industrial park on September 24, 2026.
The High Court's ruling found no evidence that Infinity's assets were being dissipated or that there was an urgent situation requiring the bank to act. The judge noted that administrators were appointed about 10 days after Bank of Baroda lost an application seeking to set aside a default judgment against Infinity. The court described the move as "an improper use of the insolvency jurisdiction."
Infinity Industrial Park has asked the Central Bank of Kenya to examine Bank of Baroda's internal decision-making, including the legal and credit advice considered before administrators were appointed. The company has also raised concerns over requests for partial discharge of charged properties, saying potential buyers were available and the sales could have generated funds to reduce its debt.
Infinity wants the Central Bank of Kenya to establish why some proposed transactions were not facilitated and whether restructuring and repayment proposals were properly considered. The company is seeking a regulatory probe into the bank's conduct, including its response to proposals to sell portions of the charged property and use the proceeds to reduce the outstanding debt.
The High Court's ruling terminated the administrators' appointment and barred further reliance on it. The court also allowed Infinity to pursue damages and compensation for losses allegedly caused by the administration. This decision has significant implications for the industrial park and its stakeholders.
The complaint filed with the Central Bank of Kenya is a further escalation of the dispute between Infinity Industrial Park and Bank of Baroda. The outcome of the regulatory probe will be closely watched by businesses and investors in Kenya. The Central Bank of Kenya will investigate the bank's conduct and internal decision-making.
The case highlights the importance of responsible lending and administration practices by banks in Kenya. The dispute between Infinity Industrial Park and Bank of Baroda has significant implications for the country's business environment.
Key points
- Infinity Industrial Park Limited has filed a complaint with the Central Bank of Kenya against Bank of Baroda.
- The High Court ruled that the bank's decision to place Infinity Industrial Park under administration was an "improper and collateral invocation of statutory insolvency powers."
- The Central Bank of Kenya will investigate Bank of Baroda's conduct and internal decision-making.
