The Ghost of Loans Past: How UBA Kenya’s “Big Ticket” Bets Soured
Inside the High-Stakes Fallout and Executive Shakeup Following UBA Kenya’s Bad-Debt Crisis.
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The Ghost of Loans Past: How UBA Kenya’s “Big Ticket” Bets Soured
In the high-stakes world of corporate banking, the line between a “strategic partnership” and a “balance sheet disaster” is often drawn in the fine print of security agreements. For UBA Kenya, a subsidiary of the pan-African powerhouse, that line was crossed definitively in late 2018. The departure of managing director Isaac Mwige—the first Kenyan to hold the role—was not merely a career transition; it was a clear signal of the bank’s struggle to contain the fallout from a series of high-profile corporate collapses.
The Portfolio of Peril
Between 2014 and 2018, UBA Kenya’s aggressive pursuit of the corporate elite backfired. When these “blue-chip” companies defaulted, the bank was left fighting over assets that were already mired in legal quicksand.
The exposure was significant. As of the period surrounding the 2018 leadership exit, the bank held the following outstanding debts:
ARM CementSh345 million
Nakumatt HoldingsSh250 million
Uchumi SupermarketsSh172 million
Deacons East AfricaSh98.3 million
The Collateral Mirage
The bank’s troubles were compounded by the fact that the security provided for these loans often proved illusory. The legal and political battles over these assets became a source of major frustration for the bank’s hierarchy:
Nakumatt Holdings: The bank’s efforts to recover its Sh250 million were tethered to riparian land opposite the Westgate Shopping Mall. As the government launched its crackdown on illegal developments on riparian reserves, the land’s status became legally toxic, rendering the security nearly worthless in the eyes of regulators and potential buyers.
High Court stops UBA from auctioning Nakumatt land
This video on the legal battles UBA faced regarding its collateral, which were central to the bank’s internal turmoil during the period of the CEO’s departure.
Uchumi Supermarkets: In a painful irony, the security for the Uchumi loan—land near Wilson Airport—found itself caught in a high-stakes dispute with the Kenya Civil Aviation Authority (KCAA). The authority claimed the land was part of restricted aviation infrastructure, effectively freezing the asset and blocking the bank’s attempts to liquidate it to settle the Sh172 million debt.
Tony Elumelu: A Failed Plea at the Top
The crisis eventually reached the very top of the UBA group. In a move that underscored the severity of the situation, Group Chairman Tony Elumelu—one of Africa’s most prominent financiers—reportedly took the matter to the highest office in the land. Sources indicate that Elumelu traveled to State House, Nairobi, seeking political intervention to clear the hurdles surrounding these land titles. His request to have the state facilitate the recovery of the assets was, by all accounts, rebuffed, leaving the bank to face the reality of its bad-debt reality on its own.
The Aftermath
Isaac Mwige’s departure in November 2018 was the definitive conclusion to this chapter of aggressive corporate lending. He exited the institution while it was still reeling from the double blow of mounting non-performing loans and the evaporation of its primary collateral.
While UBA Kenya has since worked to sanitize its books and pivot toward more stable, diversified sectors, the events of 2018 remain a foundational cautionary tale. It serves as a stark reminder that in the Kenyan market, a signature on a loan agreement is only as strong as the government’s willingness to uphold the underlying property rights—a lesson that cost a CEO his job and a pan-African bank its growth momentum.
A History of Leadership Churn at UBA Kenya
UBA Kenya has been marked by a high turnover rate in its top leadership, reflecting the turbulence the bank has navigated in the East African market. Since its entry into the country, the subsidiary has seen a rapid succession of managing directors, a pattern that underscores the instability often associated with its regional growth strategies.
As detailed in “Screenshot 2026-06-30 124525.png,” the leadership timeline includes:
Mary Mulili: January 2024 – Present (First female MD/CEO).
Chike Isiuwe: August 2021 – January 2024.
Yemi Adeleke: Appointed circa 2020.
Isaac Mwige, Tunji Adeniyi, Emeke Iweriebor (Interim), and Kehinde Omirinde (Interim): All served as former MDs.
The frequency of these changes highlights a consistent pattern of leadership churn as the bank has attempted to manage crises, stabilize its operations, and adapt to the complex regulatory and economic landscape of the Kenyan market.
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