Cedric Babu’s family wins as court rejects KCB move to sell Kololo home

• High Court dismissed KCB’s appeal to demand a deposit before halting the home sale.

• Court upheld an injunction protecting the Kololo property.

• Judge waived the deposit due to hardship faced by the widow and children.

• Main case will examine claims of bank negligence over insurance.

The High Court has dismissed an appeal by Kenya Commercial Bank that sought to compel the family of the late Cedric Ndilima Babu to pay a security deposit before stopping the sale of their Kololo home.

In a ruling delivered on May 4, 2026, Justice Susan Odongo upheld an earlier decision that granted an unconditional temporary injunction to the estate administrators, Olive Zaitun Kigongo and Allison Gallagher. The order blocks the bank from foreclosing on the property.

The dispute arises from a $200,000 mortgage taken by Babu in 2023. The loan fell into default after his death in May 2025. About $182,710 remains unpaid.

KCB argued that the injunction was proper but said the court should have ordered the administrators to deposit 30 percent of the outstanding loan, about $56,550, in line with the Mortgage Regulations, 2012.

Justice Odongo rejected this position. She ruled that although the law allows such a requirement, courts have discretion to waive it, especially in cases involving spouses.

The judge said the case reflects a balance between a bank’s right to recover its money and a family’s need to keep their home.

The court agreed partly with the bank that the lower court erred in saying the 30 percent rule did not apply at all. Justice Odongo clarified that the requirement begins once the foreclosure process starts, not only at the point of sale.

However, she maintained the injunction and waived the deposit. She said Gallagher qualifies for special consideration as a spouse of the deceased.

The court noted that Gallagher lives in the house with three young children and has no other place to stay. It ruled that asking her to raise the deposit would cause undue hardship.

Justice Odongo also pointed to claims that the bank failed to maintain mortgage protection insurance that could have cleared the loan after Babu’s death. She said the main case raises serious questions that must be heard.

The judge dismissed claims by the bank that Gallagher’s status as a spouse was unclear. She found that it had been consistently stated and supported.

In the end, the court dismissed the appeal and awarded costs to the family. The injunction remains in place as the main case continues.