Businesswoman Mary Wambui loses bid to save Glee Hotel in Sh8.9b row with bank

Businesswoman Mary Wambui. [File, Standard]

Businesswoman Mary Wambui has lost her grip on her Glee Hotel in the Sh 8.9 billion loan row with Equity Bank.

In a major blow to President William Ruto’s ally, High Court Judge Freda Mugambi ruled that the bank had every right to appoint an administrator.

She said that although Wambui had intimated that she could secure funding, the bank’s interests and right to recoup the money could not be wished away until she got the money.

The judge noted that although the administrator had moved in, there was resistance to hand him over crucial information such as the passwords.

She further noted that it had also been demonstrated that some Sh 23 million had been moved to Workright East Africa Limited without the administrator’s permission.

Justice Mugambi said this amounted to mischief.

“ This payment was made without the Administrator's consent, in exercise of a management and distribution function reserved to him under Sections 580 to 582 of the Act and had the effect of preferring an unsecured, unverified creditor over secured and preferential creditors ranking higher in the statutory order of priority. It was, in substance, an act in derogation of the moratorium and of the Administrator's exclusive authority, and it cannot be permitted,” ruled Justice Mugambi.

In a rare but exclusive glimpse into expansive interests, including in estate and aviation, Wambui, who is said to be President William Ruto’s close ally, first used properties under Purma Holdings Ltd to secure loans for Glee Hotel, which has now been put under administration, and for Albatross Aviation Ltd.

Nevertheless, the loan relationship between her and the lender started sometime back on October 30, 2020, when she secured a project finance loan worth Sh3.5 billion.

In a detailed account of when the rains started beating her, she explained that the purpose of the loan was to pay off Sh2 billion in outstanding loans and the completion of the seven-star-rated hotel, spa and convention centre along Northern Bypass, off Kiambu Road.

Back Purma Holdings, Wambui charged her Shelter Pride apartments, at Safari Park, to the tune of Sh240 million.

She also floated yet another property under Purma, for Sh75 million. In her explanation, the property would enable Albatross and Glee to borrow from Equity.

She then handed another property at Mogotio Road, Westlands, as collateral for Sh1 billion in favour of Glee and Purma.

Further, Wambui, through a deed of variation, handed the bank yet another property in favour of an increase of the loan to Sh3 billion. The businesswoman then had a personal guarantee of Sh22.,5 million over a sixth property and another one of Sh180 million using a title of a property in Ngong.

She added a seventh property in South B, worth Sh46 million. The three guarantees were to secure Glee’s loan.

Wambui then went flat out with her companies. She issued a Sh3 billion company guarantee using the Purma Group of Companies.

Under this, she has Purma Holdings, Charma Holdings Ltd, Enterprise Supplies Ltd, Haven Park Ltd, Albatross Aviation Ltd, Glee Hotel Ltd, Njest Supplies Ltd, Evertec General Trading, and Daydots Ltd.

As if the companies were not enough, Wambui, her two daughters, Purity Njoki and  Nyambura, issued personal guarantees and indemnities for the Sh3 billion.

Wambui also used her Kiambaa property, Ruitu, and 21 apartments in Thindigua, to the tune of Sh3.6 billion.

She also offered her companies as cross-default guarantees. In her court documents, Wambui alleges that she had paid Equity at least Sh2.5 billion to offset the principal amount and an additional Sh997 million in interest.

She indicated that the bank came calling on October 6, 2025, demanding around Sh7.4 billion from Glee. She said the bank had directed Tysons Ltd to value two pieces of land, which are registered under Glee.

 As a compromise, the court heard, she offered a global takeover of all facilities operated under Glee, Purma Holdings, Enterprise and Albatross by the Kenya Commercial Bank (KCB).

She stated that they had secured a syndicated loan, which would have enabled Glee to pay its debts by January 2026 and March 2026.

The court heard that Purma Holdings wrote to Equity, giving the lender an offer and full and final settlement of the loan facilities on the basis that Wambui was unable to pay the money owed because all her businesses were constrained from accessing credit facilities to actualise some of the agreements, which was hindering them from generating income.

At the same time, it emerged that Wambui had indicated that she could raise Sh7 billion, which was about 85 per cent of the amount the bank was demanding

Her interest was to settle two accounts held by Glee, two by Enterprise and one by Albatross. “ In response, the bank on November 20, 2025, gave conditions, including a detailed payment proposal as acceptance to her settling it.