Trustees of late Cabinet minister and business tycoon Njenga Karume estate trustees received a blow Tuesday after a court declined to stop the auction of Jacaranda Hotel in Nairobi to recover a Sh257.6 million bank loan.
They had moved to court on Tuesday to fight the planned auction, describing the hotel as the jewel of the Karume empire.
Justice Wilfrida Okwany has instead ordered the facility to pay Sh4.5 million to Guaranty Trust Bank as part of clearing the arrears it owes the lender.
She directed that the payment be made directly to the bank and not any other third parties including the Kenya Revenue Authority (KRA) by Friday this week.
KRA is also seeking to recover taxes it is owed by the four-star hotel.
The court also ordered the bank not to place any more advertisements as it impacts on the Karume estate.
