Luxury hospitality establishment Glee Hotel has been placed under administration after reportedly defaulting on loans exceeding Sh8 billion, in a move by Equity Bank Kenya to recover the outstanding debt.
According to a notice issued under the Insolvency Act, No. 18 of 2015, Kamal Anantroy Bhatt of Anant Bhatt LLP was appointed administrator of Glee Hotel Limited with effect from July 6, 2026.
The appointment, made by Equity Bank Kenya Limited pursuant to Section 563(2)(b) of the Insolvency Act, transfers control of the hotel’s assets and management to the administrator, effectively suspending the powers of the company’s directors over its operations and property.
“With the appointment, the Administrator has taken control over the assets and the management of the affairs of the Company. By virtue of the Administration, the powers of the Directors of the Company in terms of dealing and/or transacting with the Company’s Assets have ceased,” the notice states.
Administration is a legal insolvency process designed to protect a financially distressed company while an independent administrator assesses its financial position, safeguards its assets and explores options such as restructuring, refinancing, selling the business or maximizing returns to creditors.
As part of the process, all individuals and organizations with claims against Glee Hotel have been instructed to submit their claims in writing, together with supporting documents, to the administrator within 30 days for consideration.
The company’s directors have also been directed to provide the administrator with a Statement of Affairs within 12 days of the notice, detailing the hotel’s assets, liabilities, creditors and overall financial position.
The notice further states that the administrator will act on behalf of the company without assuming personal liability for its debts or obligations.
The move signals a significant development for one of Nairobi’s high-end hospitality establishments, with the administration process expected to determine whether the hotel can be restructured and continue operating or whether its assets will be disposed of to settle outstanding obligations.
Equity Bank has not publicly disclosed the specific circumstances surrounding the alleged loan default, while Glee Hotel management had not issued an official statement on the appointment of the administrator by the time of publication.
The case underscores the financial pressures facing some businesses amid challenging economic conditions, with lenders increasingly turning to insolvency proceedings to recover unpaid loans where restructuring efforts have proved unsuccessful.
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