Kenya Commercial Bank has for the first time confirmed that it lent Deputy President William Ruto Sh1.2 billion for development of Weston Hotel property.
Weston Hotel, which is associated with the DP, is in court with Kenya Civil Aviation Authority (KCAA), which claims ownership of the land.
The bank is now locked in a court battle where the Kenya Civil Aviation Authority (KCAA) is claiming ownership of the land and wants the hotel demolished and the property handed back to it.
KCB argues that it risks losing the Sh1.2 billion plus interest on the loan if the court grants the aviation regulator its wish since the title property was used as security for the loan.
“At the time of registration, the interested party (KCB) did due diligence and fulfilled all prerequisites to the registration of the charge in the land as required by law,” the bank said in documents filed in court.
The bank wants the court to dismiss the KCAA petition.
“I am further advised by the Interested party’s advocates that the import of such an order is that the interested party would lose the only security it has over the loan facilities advanced to the 2nd respondent (Weston Hotel),” said Bonnie Okumu, director of legal services at KCB.
Initially, the National Lands Commission had called for mutual agreement in which it advocated for compensation of the property by the hotel to KCAA.
But through lawyer Ahmednasir Abdullahi, the hotel has refused to pay, arguing that the land was acquired legally through laid down procedures.
The entry of KCB could further complicate the issue since the loan which was acquired in 2014 is yet to be paid in full.