List of Major Kenyan Hotels Taken Over by Banks in 2025

Since the start of 2025, several companies in Kenya have shut down, citing a tough economic environment marked by the high cost of living, rising taxes, and mounting debts.

The hospitality sector has faced significant challenges, including rising non-performing loans, intense competition from short-term rentals like Airbnb, and a slow recovery following the pandemic.

As a result, banks have increasingly turned to receivership to recover debts, particularly targeting mid-tier establishments, including three- and four-star hotels. Since January 2025, at least three notable hotels have been seized or placed under receivership due to unpaid loans.

This article highlights some of the major hotels in Kenya that have been placed under receivership by banks since the beginning of 2025.

List of Notable Hotels Placed Under Receivership

1. Eastland Hotel

Eastland Hotel, a popular 4-star hotel located in Kilimani area in Nairobi, was recently placed under receivership by Equity Bank due to an undisclosed debt effective September 9 2025.

In a notice dated Thursday, September 11, 2025, Equity Bank announced the appointment of Kamal Anantroy Bhatt of Anant Bhatt LLP as the Receiver and Manager of the hotel.

“Notice is hereby given that Kamal Anantroy Bhatt and Jai Kamal Bhatt, of Anant Bhatt LLP, were appointed as Joint Receivers and Managers (‘the Receivers’) of Eastland Hotel Limited (‘the Company’) on September 9, 2025, by Equity Bank (Kenya) Limited (‘the Bank’),” read part of the notice.

2. Upperhill Hotel

The Nairobi Upper Hill Hotel, situated in the Upper Hill area of Nairobi, was placed under receivership by the National Bank of Kenya on August 18, 2025.

In a notice dated Wednesday, August 20, 2025, NBK announced the appointment of Kamal Anantroy Bhatt of Anant Bhatt LLP as the Receiver and Manager of the hotel.

“Notice is hereby given that Kamal Anantroy Bhatt, of Anant Bhatt LLP, was appointed as Receiver & Manager (‘The Receiver’) of Nairobi Upper Hill Hotel Limited (‘the Company’) on 18th August 2025 by National Bank of Kenya Limited (‘the Bank’),” the notice read in part.

The Nairobi Upper Hill Hotel, owned by businessman Geoffrey Wahome Muotia, reportedly owes NBK Ksh447 million from loans dating back to 2014.

3. Nyakoe Hotel

In August 2025, the National Bank of Kenya (NBK) placed the Nyakoe Hotel in Kisii under receivership due to an undisclosed debt.

The move was part of a larger effort by NBK to recover money from multiple debtors.

The Bank officially appointed Kamal Anantroy Bhatt of the accounting and consultancy firm Anant Bhatt LLP as the receiver.

Also Read: National Bank Takes Over Nairobi Upperhill Hotel

The receivership followed a long-running disagreement between NBK and the hotel’s management regarding an unpaid debt.

NBK announced that the receiver would take control of all businesses and affairs of the Nyakoe Hotel.

Circumstances Under Which Companies are Placed Under Receivership

A receivership is a way for lenders to recover money when a company fails to make loan payments. A receiver can also be appointed during a shareholder dispute to finish a project, sell assets, or sell the business.

Circumstances companies can be placed under receivership:

• When a company fails to meet its payment obligations on a loan, a secured creditor (like a bank) can appoint a receiver to take control of the assets that were used as collateral. The receiver then sells those assets to recover the outstanding debt.
• A company may be put into receivership when it is insolvent, meaning its liabilities are greater than its assets. In this situation, the company cannot pay its debts as they become due.
• A court may appoint a receiver if there is a significant risk that a company’s assets will be wasted, hidden, or improperly managed. This ensures the assets are preserved for the benefit of all creditors.

Also Read: Equity Bank Takes Over Swafi Foods Limited

• When there is evidence of fraud or financial mismanagement, courts may appoint a receiver to secure assets and prevent any further loss.
• When severe internal conflict between owners or shareholders makes effective management of the company impossible, a court can appoint a receiver to protect the business from further harm.

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