KCB Bank has moved to take over the management of Pinebridge Beach Hotel in Mombasa from its owner, Alnoor Kanji, who is also the proprietor of English Point Marina.

This decision comes in the wake of English Point Marina being placed under administration by the bank over Sh5.2 billion debt. The move has been met with controversy and condemnation.
Forceful takeover

Reports say the receiver managers appointed by KCB Bank closed in on Pinebridge Beach Hotel and forcefully took over the property.

The hotel’s owner, Alnoor Kanji, was reportedly out of the country at the time of the takeover. This has raised concerns among industry experts and stakeholders about the manner in which the bank handled the situation.

Mohammed Hersi, former Kenya Association of Hotel Keepers and Caterers CEO, expressed his dismay over the development. He said the matter is before the courts, and urged KCB to allow the legal process to run its course.

Hersi also voiced his disapproval of the physical manner in which the takeover occurred, advocating for a more professional approach by appointing level-headed receiver managers. “On behalf of Diani Hospitality Owners, I condemn this violent act, and the law will take its course as this qualifies as assault,” he said in a video post on X social media showing a scuffle between the receiver managers and hotel operators.

Sources indicate that during the takeover of Englishpoint, the elderly mother of the owner was under duress and she finally passed on a few weeks after that dramatic takeover.

“KCB has to rethink this, pull back. Won’t be surprised if there is a politically correct wannabe behind the uncouth approach. KCB should be cited for contempt! Moving in with global tourists in residence blights Kenya’s image as a preferred tourist destination!,” said Paddy Onyango, executive director at Citizens Coalition for Constitutional Culture.

With rising interest rates the value of non-performing loans is rising across most banks which could lead to further foreclosures across the country.