When William Osewe Guda, popular hotelier, controversial businessman and owner of Ronalo, or Kosewe went to apply for a 330 million loan, he had no idea what lay in store for him and how the mode of business was about to undergo incredible changes over the coming course of time. He figured he was simply going to obtain money from the profits of his businesses and pay off the creditors.
However, Corona happened and his plans were thrown into disarray. Mr. Osewe found himself unable to pay the huge debt that he owed the bank, and the banks moved in to put up his properties for sale. Kosewe, a popular eatery based in Kisumu and Nairobi was to be auctioned by early this year.
However, the Court of Appeal has temporarily halted that auction that arose from the Ksh330 million debt owed to Guaranty Trust Bank (GT Bank).
Mr Osewe, who also owns the Bluewater Hotel in Kisumu, faces auction of not just the restaurants, but his apartment in Nairobi’s South C as well.
A bench of three judges ruled that the auction be put on hold on the single condition that they deposit Sh25 million in court within 45 days.
In their ruling, the Judges agreed with Osewe that he indeed stands to lose greatly if the auction proceeds.
“We have considered the application and concluded that the grounds raised by the applicants are arguable and cannot be said to be frivolous such as to be dismissed as insubstantial. Their properties are in danger of being sold and if this application is not granted they stand to suffer a colossal loss if transferred to third parties due to the value involved, and the appeal would be rendered nugatory,”
Mr Osewe argued in court that he continued to service their loan despite disruptions resulting from the Covid-19 pandemic.