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Bank takes over management of Thika Nursing Home over Sh370m debt

The High Court has ruled in favour of Bank of Baroda to take over the operations of Thika Nursing Homes and Thika School of Medical and Health Sciences over a Sh. 370 million debt.

In a notice published in the newspapers, Ponangipalli Venkata and Swaroop Rao are now in charge of the operations of the institutions after orders issued by Justice Alfred Mabeya in November were discharged on December 29, 2021.

In November 2021, the proprietor of the college and the hospital had obtained temporary orders barring the joint administrators from taking over the operations of school over a debt owed to the lender. The two were appointed as joint administrators by the bank on November 22.

Through their lawyer Tom Ojienda, the two institutions claimed the move by the bank to appoint administrators to take over the operations had crippled them. He said that the institution has the ability to repay its debt and had indeed repaid Sh. 15 million only for the lender to appoint the joint managers.

He added that soon after taking over the administration of the college, the administrators fired all the teaching staff, compromising the education of the students, mostly youths and risking their future.

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