The High Court has struck out a fresh application by Standard Investment Bank (SIB) seeking to attach additional bank accounts belonging to Bomas of Kenya in a bid to recover a Sh104 million debt.
In its ruling, the court held that allowing the new application would create parallel recovery proceedings, leading to confusion and possible oppression of Bomas of Kenya and third parties involved.
The judge noted that the mere claim that the State corporation had opened new bank accounts did not justify the filing of separate execution proceedings.
‘Accordingly, the Notice of Motion dated May 18,2026 is struck out with costs,’ the court ruled.
The dispute stems from a Sh104 million debt owed by Bomas of Kenya to SIB following an arbitration award. The court heard that the State corporation had paid Sh30 million through instalments between December 2023 and September 2024.
Bomas of Kenya told court that its subsequent default was caused by circumstances beyond its control, particularly the commencement of the Bomas International Convention Complex project. According to the corporation, the project led to the closure of its commercial operations and an estimated 84 percent drop in revenue.
SIB moved to court in January seeking orders compelling several banks, including KCB Bank Kenya, Co-operative Bank and Standard Chartered Bank, to release funds held on behalf of Bomas of Kenya to settle the debt.
It argued that it had established that Bomas of Kenya maintained additional bank accounts that had not previously been disclosed and whose balances should be available to satisfy the outstanding award.
However, Bomas opposed the fresh application, arguing that a similar execution application was already pending before the court.
The corporation added that it had separately filed an application seeking to stay the proceedings and that both matters were scheduled for hearing. Dismissing the application, the court held that SIB remains at liberty to seek appropriate directions in the pending attachment proceedings regarding any additional accounts or assets discovered during the execution process.
The court heard that filing a new application amounted to a multiplicity of execution proceedings and was therefore oppressive.
Bomas of Kenya also denied holding an account with Standard Chartered Bank and maintained that the funds held at Co-operative Bank were insufficient to satisfy the debt.
The state corporation further argued that freezing all its bank accounts would severely disrupt its operations and affect more than 300 employees.