Nairobi, Aug. 2 -- The High Court has cleared KCB Group to auction Cysuites Apartment Hotel, a luxurious serviced apartment hotel owned by Cytonn Investments, over a defaulted Sh425.6 million loan.

Justice Fridah Mugambi said that Cytonn had no legal standing to block the bank from auctioning the property because the registered owner is Wasini Resorts Ltd.

The investment firm challenged the sale as a shareholder in Wasini Resorts Ltd through Cytonn Investment Partners Twenty LLP.

But the court ruled that a shareholder cannot stop a lender from enforcing security over land owned by the borrowing company.

The court row also sucked in the government official receiver, which had frozen several assets, including Cysuites Apartment Hotel, i...