A high-stakes legal battle has erupted between lender Bank of Baroda and commercial developer Infinity Industrial Park, raising fundamental questions about judicial authority, corporate governance, and debt enforcement tactics in Kenya.
At the centre of the dispute is a Sh2.9 billion court judgement awarded to Infinity, an ambitious 200-acre SME hub launched in 2016 by former President Uhuru Kenyatta to house up to a thousand small-scale manufacturers.
The Legal Standoff and Controversial Insolvency Notice
On July 31, 2026, Justice Mulwa of the High Court dismissed an application by Bank of Baroda seeking to set aside the multi-billion-shilling judgement. The judge delivered a stern rebuke, characterising the bank’s failure to file its defence prior to the pre-trial conference as sheer indolence.
Barely ten days after Justice Mulwa confirmed the enforceable Sh2.9 billion decree against the lender, Bank of Baroda issued a sudden insolvency notice, seizing control of Infinity Industrial Park.
Infinity founder Shah, who personally guaranteed the credit facility, has petitioned the court, arguing that the takeover was a calculated attempt to subvert judicial enforcement. According to Shah, placing bank-appointed administrators in charge effectively allows Bank of Baroda to manage both sides of the lawsuit and block the execution of a valid court order.
The Role of Administrators: Rao and Swaroop Rao
To execute the takeover, Bank of Baroda appointed Rao and Swaroop Rao as joint administrators, a pair well-known within Kenya’s corporate recovery sector.
This same duo was deployed by Bank of Baroda in November 2021 against Thika Nursing Homes and Thika School of Medical and Health Sciences over an alleged Sh262.8 million debt. In that instance, legal counsel Professor Tom Ojienda accused the bank of listing the institution with Credit Reference Bureaus (CRBs) to block alternative refinancing before taking over operations through proxies.
A History of Contested Insolvencies
Rao carries a long record in high-profile liquidation proceedings across Kenya:
Mumias Sugar Company: Appointed receiver-manager in September 2019 under KCB Bank over debts exceeding Sh30 billion. He faced intense scrutiny from cane farmers, activist Okiya Omtatah, and a parliamentary committee over unremitted taxes, ethanol sales, and a failed leasing deal with Devki. In April 2022, Justice Alfred Mabeya revoked Rao’s appointment for non-compliance.
Athi River Steel Plant: Served as receiver-manager since 2018 regarding a Sh7 billion banking syndicate debt.
Labh Singh Harnam Singh & Proctor & Allan: Appointed administrator alongside Swaroop Rao for the bodybuilder over a Sh1 billion KCB Bank debt, and receiver for Proctor & Allan East Africa in February 2025.
Pattern of Security Enforcement Across Kenya
The enforcement action against Infinity Industrial Park reflects a broader pattern in Bank of Baroda’s regional portfolio:
Mediheal Doctors Plaza: In February 2026, the High Court in Eldoret allowed Bank of Baroda to auction a Sh173 million property belonging to former Kesses MP Swarup Mishra’s hospital network.
Ndovu Estates Limited: Conversely, Ndovu Estates successfully secured an injunction against Bank of Baroda after proving its 30-day statutory notice over Eldoret land parcels was legally defective.
Keppel Investments Limited: The firm has ongoing litigation alleging Bank of Baroda delayed loan disbursements while penalizing the company for shortfalls.
What sets the Infinity case apart, however, is the sequencing: Bank of Baroda initiated administration after losing a court case and facing an enforceable decree on land specifically protected by court orders.
Compliance Track Record of Parent Entity
Bank of Baroda (Kenya) is a subsidiary of India’s third-largest public sector bank, majority-owned by the Government of India. The parent bank has faced international compliance challenges:
NMC Health Settlement (July 2026): Bank of Baroda agreed to pay approximately $600 million to resolve claims brought by administrators of Gulf-based NMC Health following its $6.6 billion debt concealment scandal.
Regulatory Fines: The Reserve Bank of India (RBI) penalised Bank of Baroda in 2014, 2016, and 2019 over Anti-Money Laundering (AML) failures, fraudulent import-remittances, and delayed fraud reporting.
Upcoming Ruling by Justice Mulwa
As the September 1 court date approaches, Justice Mulwa is set to decide whether Bank of Baroda’s actions constitute lawful debt recovery or deliberate contempt of court.
If the administration stands, the bank-appointed officers will assume full authority over Infinity Industrial Park, its 200-acre asset base, and the pending legal claims against the bank itself. If the court finds merit in Shah’s application, two Bank of Baroda directors could face civil sanctions, fines, or imprisonment for disobeying court orders.
