Nairobi, June 21 -- The High Court in Nairobi has cleared the way for Equity Bank to auction dozens of properties tied to a Sh1.37 billion loan advanced to four companies, including a government contractor, dismissing claims that the debt had been inflated through excessive interest charges.

The companies blamed their financial difficulties on unpaid government debts, but the court ruled that disputes over loan balances and property valuations could not stop the bank's recovery process.

The court rejected an application by Njuca Consolidated Company, Wakuga Holdings, Cochem Services and Paric Hardware Products seeking to stop the lender from selling a large portfolio of charged properties in Nairobi and Mombasa.

The properties comprise...