Nairobi, Aug. 24 -- SBM Bank has won priority in the liquidation of a Cytonn-backed residential development project comprising 477 apartments to recover a Sh650 million loan that went into default six years ago.

The High Court upheld SBM's right to enforce its security over The Alma in Ruaka, owned by Cytonn High Yield Solutions. This investment vehicle raised billions from investors for real-estate projects through special-purpose entities.

The court also protected buyers who will prove they had fully paid for their apartments before the bank registered its charge in August 2019.

The project sits on 4.67 acres of land, comprising nine blocks and 477 one-, two- and three-bedroom apartments. The project includes a commercial centre, swi...