Business

The legal battle has intensified, with Itco Investments Limited (ITCO) escalating it to the Court of Appeal to prevent KCB from seizing or selling the luxurious Kwale-based hotel.

In a major legal confrontation, Kenya Commercial Bank (KCB) is facing scrutiny over its aggressive pursuit of Pinewood Beach Resort and Spa, prompting broader questions about the bank’s ethical standards.

In a major legal confrontation, Kenya Commercial Bank (KCB) is facing scrutiny over its aggressive pursuit of Pinewood Beach Resort and Spa, prompting broader questions about the bank’s ethical standards.

The legal battle has intensified, with Itco Investments Limited (ITCO) escalating it to the Court of Appeal to prevent KCB from seizing or selling the luxurious Kwale-based hotel.

 

ITCO says that a High Court ruling, which favored KCB, was based on misleading connections to unrelated legal proceedings, in which ITCO had no involvement.

 

Critics argue that KCB’s aggressive tactics in loan recovery raise serious ethical concerns and highlight the need for greater oversight and regulation.

 

This isn’t the first time KCB has faced such allegations; in Uganda, Tirupati Development Uganda Limited accused the bank of breach of contract and money laundering, among other serious allegations.

 

The latest incident according to the hotel management is the second, that has risked crippling the business, currently hosting tens of tourists from across the world.

 

Advertisement

 

Guests were also not spared during the November 17 incident, with some losing valuables of unknown amounts.

 

Local police were forced to fire in the air to deescalate the situation, which left many injured.

 

In a statement on Sunday, the hotel owner and Managing Director Alnoor Kanji accused a receiver manager of Kenya Commercial Bank (KCB) of being behind the violent attack.

 

“We are grateful that none was killed,” he said of the November 17 attack that forced police to fire in the air, to restore peace and order.

 

“Without the protection of armed police and the courage of our staff, this may not have been the case. Tourist police had to intervene with gunfire while our staff were forced to fight the attackers head on.”

 

Deborah Cartwright, a tourist from the United Kingdom, who is also a nurse practitioner, offered help to injured staff during the recent attack.

 

“I attended to a security guard who had a deep right sided head wound,” she said.

 

Conclusion.

 

The Pinewood Beach Resort and Spa case has brought to light broader issues regarding the treatment of debtors and the power dynamics between banks and their clients.

 

Has KCB adequately addressed the concerns raised by ITCO and other critics regarding its handling of the loan dispute and its treatment of borrowers?

 

Many borrowers feel that they are at the mercy of banks, with little recourse when faced with aggressive debt recovery tactics.

 

The legal battle sheds light on KCB’s questionable practices, with critics pointing to a pattern of aggressive loan recovery tactics leading to prolonged legal battles. Acting like loan sharks credit microfinance.

 

Victims advice newbie clients to best seek alternative banks more lenient especially during this harsh economic times.

Back to top button