KCB Bank Steps In to Revive Struggling Cedarwood Hotels Amid Financial Turmoil.
KCB Bank has assumed control of operations at Cedarwood Hotels, a prominent Kenyan hospitality chain facing severe financial distress due to mounting debts and operational challenges.
This move aims to stabilize the properties and protect jobs while the bank works to recover its loans. The takeover highlights growing tensions between lenders and hoteliers in Kenya’s recovering tourism sector.
The move follows the appointment of Kamal Anantroy Bhatt of Anant Bhatt LLP as the Receiver and Manager of the company, trading as White Rhino Hotel. The appointment was made on December 5, 2025, by KCB Bank, which is seeking to manage the affairs of the troubled hotel group.
According to the notice issued by the Receiver, all the company’s assets and undertakings will now be under his control.
“Notice is hereby given that Kamal Anantroy Bhatt, of Anant Bhatt LLP, was appointed as Receiver & Manager (“The Receiver”) of CEDARWOOD HOTELS AND RESORTS INVESTMENTS COMPANY LIMITED (IN RECEIVERSHIP) (T/A White Rhino Hotel) (“the Company”) on 5th December 2025 by KCB Bank (Kenya) Limited (“the Bank”),” read the notice.
Background on Cedarwood’s Downfall
Cedarwood Hotels, known for upscale properties in key tourist destinations like Mombasa and Nairobi, accumulated significant debts during the COVID-19 pandemic and subsequent economic pressures.
Owners struggled with loan repayments to KCB, leading to legal battles where courts eventually sided with the bank, allowing receiver managers to step in.
“Any person who purports to hold, receive, use, or attempts to buy or sell, contract, or otherwise deal with the assets of the Company or with the Company without the prior written consent of the Receiver will be acting in contravention of the law and will be liable to legal action,” added the notice.
Similar disputes, such as the Pinewood Beach Resort case involving KCB, underscore how aggressive debt recovery is reshaping Kenya’s hospitality landscape.
The chain’s troubles mirror broader industry woes, including high energy costs, inflation, and reduced tourist arrivals amid global uncertainties.
Cedarwood’s inability to service loans triggered the operational handover, leaving staff and guests uncertain about the future.
As a major lender with a vast asset base exceeding KSh 2 trillion, KCB Group frequently deploys receiver managers to manage distressed assets like hotels.
In Cedarwood’s case, the bank took over daily operations to prevent total collapse, appointing professionals to oversee management, finances, and renovations.
This approach not only safeguards KCB’s investments but also positions the properties for potential resale or revival under new ownership.KCB’s history includes handling similar takeovers, such as the prolonged Pinewood dispute where an investment firm appealed a High Court ruling favoring the bank’s control.
Such interventions often lead to short-term disruptions but long-term stability, benefiting creditors and employees alike.
Implications for Kenya’s Hotel Sector
The Cedarwood saga signals rising risks for hoteliers reliant on bank financing in a volatile market.
With tourism rebounding yet challenged by high interest rates and supply chain issues more properties could face similar fates, prompting calls for government support like tax relief or subsidized loans.
Trade bodies warn that unchecked debt defaults threaten thousands of jobs in an industry vital to Kenya’s economy.
For competitors and investors, KCB’s involvement opens opportunities to acquire prime assets at discounted rates post-stabilization.
Broader economic observers view this as part of KCB’s aggressive portfolio management strategy amid its regional expansions, like the recent NBK sale.
Cedarwood Hotels now operate under KCB oversight, with promises of continuity for loyal customers and staff retention where possible. Owners may pursue appeals or negotiations for buyback, but banks hold the upper hand in current rulings.
The directors of Cedarwood Hotels have been directed to submit a Statement of the Company’s Affairs within 12 days, in the prescribed format.
Further, the receiver will act on behalf of the company without any personal liability, and all claims, queries, or matters relating to the company are to be addressed directly to him.
All claims or inquiries relating to the company should be addressed to the Receiver at:
Kamal Anantroy Bhatt
Anant Bhatt LLP-1H Floor, City House, Nyerere Avenue, Mombasa
P.O. Box 80766-80100,
Telephone: 0726241555
Email:receiver@anantbhatt.com, Website: www.anantbhattlip.com
Reports suggest swift resolutions could restore the chain’s viability, boosting confidence in the sector. Stakeholders urge dialogue between lenders, hoteliers, and regulators to prevent widespread insolvencies.
As President Ruto’s administration pushes tourism growth, cases like Cedarwood test the balance between debt recovery and economic preservation, with KCB emerging as a pivotal player.