Supreme Court Gives the Green Light to Auction Karuturi Assets

Stanbic Bank is now free to auction assets of Karuturi Ltd over a debt of Sh1.8 billion. Surya Holdings Ltd and THEA Holdings moved to the Supreme Court arguing that they were denied the opportunity to challenge the contents of the audit report by Deloitte Consulting Limited.

Stanbic Bank branch on Kimathi Street PHOTO: KHUSOKO

The Supreme Court of Kenya has dismissed an appeal by Karuturi Ltd paving the way for Stanbic Bank to auction its assets to recover KSh1.8 billion debt.

Shareholders of Karuturi had sought to prevent the sale of the company’s assets, and those of its guarantors, Surya Holding Limited and Rhea Holdings Limited, to repay debts owed to its secured creditors.

The five-judge bench comprising Deputy Chief Justice Philomena Mwilu, Justices Mohamed Ibrahim, Jackton Ojwang and Smokin Wanjala said matters of the appeal had not been discussed at the high court.

In the appeal, Karuturi had argued that it was not given a chance to examine the Deloitte Consulting Group’s audit post-receivership debt report and that they had raised constitutional issues which were not considered.