The High Court has granted Motorhub Limited permission to exit administration provided the car dealer clears a Sh77.2 million loan owed to KCB Bank Kenya within 120 days, giving the firm a chance to stabilise its operations.
In its ruling, the court said the company may halt the administration process if it settles the outstanding arrears within four months starting March 2.
Should Motorhub fail to meet the repayment deadline, the bank will be free to enforce its securities, including selling two properties used as collateral, without seeking further court approval.
The dispute stems from a decision by KCB to place Motorhub under administration in October 2025 after the company defaulted on a Sh350 million credit facility issued earlier that year. The lender subsequently appointed Kereto Marima as administrator.
Motorhub later moved to court seeking to overturn the appointment and block the bank from selling the secured properties or initiating other recovery measures. The firm argued that the administration had damaged its reputation and threatened existing business agreements.
The Nairobi-based dealer, which imports and sells vehicles and also provides servicing and other automotive solutions, said the loan balance had climbed to Sh381 million, including contested arrears, attributing the increase to what it described as punitive interest charges.
Through its director, Edward Karau Gachani, the company told the court that the administration had triggered negative publicity, customer refund requests and potential disruption to a planned dealership and service centre partnership with Salvador Caetano Kenya Limited.
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Motorhub maintained that the partnership could provide a vital financial boost and warned that prolonged administration could cripple its operations and threaten more than 200 jobs.
KCB opposed the request, stating that the borrower had repeatedly defaulted despite two earlier loan restructurings in February and May 2025.
The administrator also defended his appointment, noting that initial assessments indicated the company was financially distressed and faced claims from several creditors.
However, the court observed that Motorhub had acknowledged the debt and was attempting to raise funds through asset sales to clear the arrears.
In its decision, the court stated that the company had failed to meet its repayment obligations and would need to clear the arrears within the specified period, failing which the bank would be free to exercise its recovery rights.
