Bank of Baroda Kenya faces Sh2.9 billion debt recovery warrant

Bank of Baroda (Kenya) Limited is facing severe legal and operational challenges following a High Court order to recover nearly Sh2.9 billion owed to Infinity Industrial Park Limited. The court has issued a warrant to Moran Auctioneers to attach and potentially auction the bank’s movable assets to satisfy the debt, which includes the decretal sum and associated collection fees.

In addition to the recovery efforts, Infinity Industrial Park is seeking the cancellation of the bank’s operating license in Kenya. The company has filed contempt of court proceedings against the bank and its directors, alleging that the bank defied previous court orders that restrained it from appointing administrators or taking possession of Infinity’s property in Nairobi.

The bank’s stability is further pressured by reports that its Indian headquarters has directed the closure of its Kenyan operations. This follows similar pressures in South Africa and the United Kingdom, as well as the fallout from a $600 million settlement related to the insolvency of NMC Health.