KCB Wins Priority over Proctor & Allan Assets in Court

In Short

Kenya’s High Court has given KCB first claim over Proctor & Allan (EA) Limited assets in a debt dispute worth about Sh4.9 billion.

What Happened

The High Court ruled on August 17, 2026 that Kenya Commercial Bank, which operates as KCB Group, has priority over Proctor & Allan (EA) Limited’s assets.

The decision blocked EPCO Builders from attaching and selling the cereals manufacturer’s property to recover a separate Sh150 million claim.

EPCO’s claim traces back to an arbitration linked to a 2014 construction agreement. The tribunal awarded EPCO Sh74.7 million, plus costs and 14 percent annual interest. The High Court had allowed enforcement in February 2025, and an auctioneer had already proclaimed movable assets like machinery and equipment.

KCB objected, saying the same assets were covered by its security, including an all-assets debenture. A debenture is a legal document that lets a lender take security over a company’s assets, like a lien over “everything the business owns.”

The court agreed with KCB. It found that KCB’s floating charge had “crystallised” before EPCO’s enforcement moved beyond proclamation. A floating charge is security that hovers over changing business assets like stock and receivables, and it can crystallise, meaning it locks onto the assets after a default.

The judge also noted that a proclamation preserves property pending sale, but does not transfer ownership.

Why It Matters

For lenders and trade creditors, the ruling is a reminder that a court decree does not automatically put an unsecured creditor first in line.

In practice, secured lenders with properly registered debentures can rank ahead of other creditors if the security has crystallised before an execution sale happens.

The court also ordered the assets preserved while competing claims are determined. That can affect recovery timelines for contractors, suppliers, and other businesses that rely on enforcement to get paid.