Court rules that Banks can pursue loan guarantors if auctions fail
Court Actions Impact Banking, Energy, and Sugar Industries - December 2025
A recent court ruling has clarified that banks are legally permitted to pursue loan guarantors for repayment if a primary borrower's assets fail to cover the loan through auction. In a separate case, the High Court has frozen a payment of Sh4.5 billion by the Kenya Electricity Transmission Company (Ketraco) to a Spanish contractor amidst a dispute. Meanwhile, Kenyan sugar farmers are expressing serious concerns that ongoing court battles are hindering crucial reforms intended to revitalize their industry. These legal proceedings and rulings are creating significant financial impacts across Kenya's banking, energy, and agricultural sectors.









