The High Court of Kenya has ruled that banks can pursue guarantors for unpaid loans, even after failed property auctions. This decision came from a case where a bank sought to recover Ksh321 million from directors who guaranteed a hotel's defaulted loan.

• The hotel and another company defaulted on loans totaling Ksh231 million obtained in 2012 and 2015.
• Judge Peter Mulwa emphasized that guarantees are legally binding and remain enforceable even after loan restructuring or failed auction attempts.
• The court denied the guarantors' claim for general damages, stating contract law does not allow such claims.