Friday October 4, 2019-Deputy President William Ruto has suffered another blow in his quest to retain his prestigious Weston Hotel.
This is after a bank claimed that it is owed Ksh 1.5 billion by Ruto’s Weston Hotel.
The bank joined the case in which the Kenya Civil Aviation Authority has sued both the hotel and the National Land Commission (NLC) in trying to recover the land where the hotel stands.
According to reports, KCB Bank had secured a couple of loans with the land as its security before KCAA took the matter to court.
In papers that are before Judge Bernard Eboso, the bank's director, Bonnie Okumu stated that Weston had secured a Ksh 350 million loan on October 9, 2014 using the bank as it's security.
Further, he stated that the bank also lent the hotel Ksh 150 million and on July 8, 2015, the bank was also issued a Ksh 700 million loan with the land as its collateral.
The bank stated that it had done due diligence by confirming with the Registrar of Lands that Weston was the registered owner.
“There is a real risk that the applicant may be rendered a mere bystander as orders which are adverse to its beneficial interests are granted to the petitioner.”
“By the virtue of the registered charge and further charge, the applicant has extended banking facilities to the second respondent amounting to Sh1.5 billion and $1.5 million (Sh150 million),” court papers seen by the publication read.
The bank's application to join the case was not challenged by both the hotel and KCAA.
The Kenyan DAILY POST