Infinity Industrial Park seeks CBK review of Bank of Baroda's conduct

The move comes days after the High Court terminated the administration and ordered the restoration of Infinity’s management, property and records.

In a ruling delivered on September 24, 2026, Justice Freda Mugambi set aside the appointment of the joint administrators, holding that the insolvency process had been invoked improperly and as a collateral measure at a time when significant financial claims between the two sides had yet to be resolved.

Infinity has submitted the complaint to CBK alongside court rulings and other documents arising from its dispute with the bank.

Among the matters the company wants examined are the basis on which Bank of Baroda appointed the administrators, its management of the credit relationship, and its response to proposals concerning restructuring and repayment.

Infinity has also asked CBK to scrutinise the bank’s handling of requests for the partial release of charged properties and determine whether the lender followed its internal governance, risk management and legal review procedures before resorting to administration.

The issues have been raised by Infinity as part of its complaint and are yet to be determined by CBK.

The administration followed a broader commercial dispute in which the bank and Infinity have competing financial claims.

Bank of Baroda had demanded roughly Sh2 billion from Infinity, arguing that the company had fallen behind on its loan obligations. The lender maintained that, as a secured creditor, it was entitled to enforce its security over Infinity’s property.

Separately, Infinity had secured a default judgment against Bank of Baroda in another commercial case.

The bank sought to have that judgment overturned and to be allowed to defend the claim. However, the application was dismissed on July 31, 2026, and the matter was subsequently headed for formal proof.

Bank of Baroda later appointed joint administrators over Infinity on the strength of its claim against the company.

Infinity’s directors and shareholders contested the move, arguing that the bank had commenced the insolvency process while a separate dispute over Infinity’s claim against the lender was still before the courts.

The High Court was required to consider whether the bank’s claimed debt was sufficiently established to support administration, particularly given Infinity’s outstanding claim against the lender.

Justice Mugambi found that the competing claims made it impossible at that stage to determine whether Infinity ultimately owed Bank of Baroda a net amount or was unable to meet its debts.

The court further found no evidence that Infinity was dissipating its assets or that circumstances required the company to be placed under administration before the competing financial claims had been resolved.

The judge consequently terminated the administrators’ appointment and directed them to hand back Infinity’s property and records.

Control and management of the company were also ordered to revert to its management.

Bank of Baroda was directed to bear the costs of the application, expenses arising from the purported administration and reasonable costs incurred in restoring the company.

Infinity is now seeking CBK’s independent assessment of the matters raised in its complaint and wants the regulator to consider whether any supervisory or regulatory measures are appropriate.

The CBK review, if undertaken, would be separate from the High Court proceedings and would concern the regulatory issues raised by Infinity in its complaint.