High Court Allows KCB to Auction Cytonn’s CySuites Hotel Over Ksh 425.6 Million Loan

The High Court has cleared KCB Group to proceed with the auction of Cysuites Apartment Hotel in Nairobi's Westlands PHOTO/File

The High Court has cleared KCB Group to proceed with the auction of Cysuites Apartment Hotel in Nairobi’s Westlands after dismissing an application by Cyntonn Investment Partners 20 LLP to stop the sale.

The property had been offered as security for a Ksh 425.6 million loan advanced by KCB to Wasini Resorts Limited, which defaulted on its payment obligations.

This loan was taken using the CySuites Apartment Hotel as collateral, which gave KCB the legal right to recover its debt by selling the property if KCB failed to pay.

In the ruling, which was delivered on July 24 2026, the High Court found that Cytonn had not met the legal threshold required for the grant of an injunction in order to restrain KCB from exercising its security.

Court Ruling

The ruling marks another significant development in the long-running Cytonn debt recovery process while allowing KCB to proceed with the auction of the apartment hotel.

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Cyntonn had argued that the proposed sale should be stopped, but the High Court upheld KCB’s rights as secured lender to enforce the taking charge over the property after the loan default.

Additionally, the ruling is the latest in a series of court decisions which involve Cyntonn-linked properties as lenders and also the official receiver chasing recovery of debts that are tied to the firm’s real estate projects.

Legal Battles

Cyntonn has been at the centre of multiple court battles because financial difficulties affected multiple of its investment products that eventually led to liquidation proceedings.

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Several other properties which are associated with the investment firm have also been subject to legal disputes and recovery procedures after the liquidation of Cyntonn High Yield Solutions together with Cyntonn Project Notes.

Further, this decision of the High Court confirms that KCB can go ahead and sell the property which is used as collateral in order to recover the unpaid loans as they follow legal process.

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