Company seeks regulatory review following High Court decision that Bank’s appointment of administrators was an “improper and collateral invocation” of insolvency powers
Infinity Industrial Park Limited has lodged a complaint with the Central Bank of Kenya (CBK) seeking a regulatory investigation into the conduct of Bank of Baroda (Kenya) Limited following a High Court ruling that overturned the bank’s appointment of administrators to the industrial park.
The complaint follows a September 24, 2026 High Court decision in Bank of Baroda Kenya Limited v Infinity Industrial Park Limited, in which the court set aside, annulled and terminated the appointment of joint administrators over Infinity Industrial Park.
The court found that the administration amounted to an “improper and collateral invocation of statutory insolvency powers”, holding that it was inconsistent with the purposes of administration under the Insolvency Act.
The ruling has already attracted attention in Kenya’s banking and corporate sectors, with reports noting that the High Court found the bank had invoked insolvency powers prematurely while a separate dispute between the parties was still pending.
Infinity seeks CBK supervisory review
In its complaint, Infinity has asked CBK to examine the governance, credit-management, legal-risk and regulatory issues surrounding Bank of Baroda’s actions.
Among the matters the company wants reviewed are the circumstances surrounding the appointment of administrators, the bank’s handling of requests for partial discharge of charged properties, proposed sales of plots to identified purchasers, restructuring and repayment proposals, and the internal approvals and risk controls applied before the administration commenced.
Infinity has also asked the regulator to consider the implications of the High Court’s findings for the bank’s governance and risk-management processes.
The company says its complaint does not ask CBK to determine issues reserved for the courts, but rather seeks a supervisory examination of the conduct of a licensed banking institution.
Court questioned timing of administration
In its September 24 ruling, the High Court examined the circumstances surrounding the commencement of the administration.
The court noted that administrators were appointed shortly after Bank of Baroda’s application to set aside a subsisting default judgment had been dismissed.
The judge found that there was no material before the court indicating that Infinity’s assets were being dissipated or that circumstances required the bank to take immediate action before the parties’ respective financial positions had been established.
The court consequently concluded that the administration was not warranted at that stage and described the move as an improper use of insolvency jurisdiction.
The decision resulted in the administrators’ appointment being set aside, annulled and terminated.
Dispute over property sales
Infinity’s complaint also focuses on the company’s requests for partial discharges of portions of the industrial park that were charged to the bank.
The company says prospective buyers were available and that completed sales could have generated funds to reduce Bank of Baroda’s outstanding exposure.
Infinity has asked CBK to examine how those requests were handled, why particular transactions were not facilitated, whether alternative proposals were made and whether the potential of property sales to reduce the bank’s exposure was adequately considered.
Those matters are contained in Infinity’s complaint and are not findings made by CBK.
Company seeks review of bank’s decision-making
Infinity has further asked CBK to examine the internal decision-making that preceded the administration, including the legal and credit advice considered, approvals obtained and whether the ongoing court proceedings were adequately factored into the bank’s decision.
The company wants the regulator to determine whether the conduct complied with applicable expectations on governance, risk management and treatment of banking customers.
The complaint comes against the backdrop of a wider legal dispute between Infinity and Bank of Baroda. Earlier this month, the bank also faced court action relating to a separate KSh2.996 billion judgment debt owed to Infinity Industrial Park.
Court leaves way open for damages claim
The High Court also granted Infinity liberty to pursue damages, compensation, special damages and consequential relief arising from losses it says were caused by the administration and actions taken during the period.
The company says it is assessing the commercial losses allegedly arising from the administration and related disruption.
The court further directed that costs associated with the application, the purported administration and reasonable restoration costs be borne by Bank of Baroda rather than Infinity’s assets.
Infinity’s directors had resumed operational control of the industrial park on August 28, 2026, following earlier interim court orders.
CBK complaint now awaits regulatory consideration
Infinity has submitted its complaint and supporting documents to CBK and is asking the regulator to conduct an independent supervisory review and take any regulatory action it considers appropriate.
The complaint itself does not establish any regulatory wrongdoing by Bank of Baroda. Any issues raised in the complaint remain subject to CBK’s consideration, while the findings expressly made by the High Court form part of the judicial record.
Infinity says it will cooperate with CBK and provide any additional documentation required during the regulator’s review.
