The Court of Appeal has given Equity Bank the green light to proceed with the auction of four properties belonging to East African Cables PLC, clearing a major legal hurdle in a long-standing debt dispute amounting to over Sh2.2 billion.
In a ruling delivered on May 23, 2025, a three-judge bench comprising Justices Jamila Mohammed, F. Tuiyott, and Pauline Nyamweya dismissed the cable manufacturer’s application to block the auction. The judges held that although East African Cables had raised an arguable case, it failed to demonstrate that the appeal would be rendered nugatory if the properties were sold before the conclusion of the case.
The dispute centers on statutory notices issued by Equity Bank on July 3, 2023, demanding full repayment of the outstanding loan. East African Cables had challenged the legality of the bank’s move, asserting that it was actively working to settle the debt and that selling the assets would undermine its operations.
In its appeal, the company requested an injunction to restrain the bank from advertising, selling, or transferring the properties located in Nairobi, arguing the sale would irreparably harm its business. Paul Muigai, the firm’s Managing Director, insisted the appeal raised weighty issues and had a high likelihood of success.
Equity Bank, however, opposed the application. In a sworn affidavit by Legal Services Manager Kariuki King’ori, the bank noted that East African Cables had acknowledged the debt and was negotiating repayment. As of December 5, 2024, the outstanding balance stood at Sh2,201,395,011.92.
The lender maintained that the appeal lacked merit and emphasized that it had the financial capacity to compensate the company should the appeal eventually succeed.
The court ruled that East African Cables had not met the threshold under Rule 5(2)(b) of the Court of Appeal Rules for granting a stay or injunction, effectively allowing Equity Bank to exercise its statutory power of sale.
The decision marks a critical juncture in the dispute, paving the way for Equity Bank to auction the properties and recover the debt.
