National Bank of Kenya (NBK) has sold the Nairobi Upper Hill Hotel in a move to recover a debt of Sh447 million owed by businessman Geoffrey Wahome Muotia, bringing to an end a decade-long legal and financial dispute.
The four-storey hotel, located in Nairobi’s prime Upper Hill area, was placed under receivership in August 2025 after Muotia defaulted on a loan initially advanced in 2014.
The facility, originally valued at Sh281 million, ballooned to Sh447 million due to accumulated interest, penalties, and other charges.
Muotia mounted several legal challenges in an attempt to stop the sale, arguing that the property had been grossly undervalued.
However, both the Environment and Land Court and the High Court dismissed his objections, clearing the way for NBK to proceed with the auction and recovery process.
A key turning point came in August 2025 with the appointment of Kamal Anantroy Bhatt of Anant Bhatt LLP as Receiver and Manager.
The court granted Bhatt full control over the hotel’s operations, assets, and business, cautioning that any dealings with the property without his consent would be unlawful.
The sale underscores growing pressure within Kenya’s hospitality sector, which has been hit by rising non-performing loans, high operating costs, and stiff competition from short-term rental platforms.
It also signals a tougher stance by lenders, who are increasingly resorting to receivership and asset sales to enforce loan recovery amid a tightening credit environment.
While details of the buyer and final sale price were not immediately disclosed, the transaction is expected to have implications for the hotel’s employees, suppliers, and customers.
Analysts say the outcome serves as a cautionary tale on the risks of prolonged loan defaults and highlights the importance of prudent financial management in Kenya’s volatile hospitality industry.