Hass Petroleum Empire Faces Collapse as Court Greenlights KSh 1.2 Billion Property Auction

The sprawling business empire of prominent Kenyan businessman Abdinasir Ali Hassan, chairman of Hass Petroleum Group Limited, is teetering on the brink of financial ruin after the Court of Appeal delivered a crushing blow to his desperate attempts to save a prime Nairobi property from the auctioneer’s hammer.

In a devastating ruling that has sent shockwaves through Kenya’s business community, a three-judge appellate bench comprising Justices Wanjiru Karanja, Mumbi Ngugi, and Aggrey Muchelule dismissed Hassan’s eleventh-hour petition with costs, paving the way for Credit Bank Limited to proceed with the auction of a prized Upper Hill property valued at a staggering KSh 1.2 billion.

The court’s decision marks a spectacular fall for the petroleum magnate, whose business interests now hang in the balance as creditors close in on valuable assets that once symbolized his commercial success.

Court documents reveal a complex web of corporate debt that began unraveling in September 2020 when One Upperhill Towers Limited pledged the suit property as collateral to Credit Bank Limited. The security was intended to guarantee enormous financial facilities totaling KSh 1.2 billion that had been advanced to two associated companies, Jabavu Village Limited and Hasson Pharmaceuticals Limited.

The deal appeared straightforward until cracks began to emerge. By January 30, 2025, One Upperhill Towers Limited was racing to the High Court in a frantic bid to stop Credit Bank Limited from auctioning the property through Purple Royal Auctioneers and Garam Investments Auctioneers.

In court papers filed with evident urgency, Hassan’s camp painted a picture of corporate persecution, claiming the loan had been serviced regularly and that the bank’s auction plans were nothing short of malicious, unprocedural and unlawful. They accused Credit Bank of brazenly flouting mandatory provisions enshrined in Sections 89, 90, and 96 of the Land Act, insisting their legal right to redeem the property had been trampled upon.

But the Court of Appeal was having none of it. In a ruling that legal experts describe as unambiguous and final, the three judges tore through the arguments presented by Hassan’s legal team, finding them fundamentally lacking in merit.

The court held that evidence of default was crystal clear and indisputable. In language that left no room for misinterpretation, the judges explained that once a charged property is used to secure a loan and the borrower fails to meet their obligations, the property automatically transforms into a commodity available for sale. The default, they determined, triggered the bank’s legitimate right to recover its funds through auction.

The decision represents more than just a legal defeat for Hassan. It exposes the precarious financial position of businesses operating under the Hass Petroleum umbrella and raises uncomfortable questions about the group’s ability to service massive debts accumulated during what now appears to have been an aggressive expansion phase.

Upper Hill, where the doomed property sits, ranks among Nairobi’s most sought-after commercial districts. The area has transformed dramatically over the past decade into a gleaming corridor of glass towers, international hotels, and corporate headquarters. A KSh 1.2 billion property in this prime location represents not just significant value but a strategic asset that any business would fight tooth and nail to retain.

The fact that Hassan has lost this legal battle suggests the financial pressures facing his group may be far more severe than previously understood. Business analysts watching the case have begun speculating about what other assets might be at risk and whether this auction represents an isolated incident or the beginning of a broader unraveling.

Credit Bank Limited, for its part, has maintained a studied silence throughout the legal proceedings, allowing its lawyers to do the talking in court. The bank’s position has been consistent and unyielding. The money was lent, the property was pledged, payments were not made as required, and therefore the auction must proceed. The Court of Appeal has now validated that position entirely.

For Purple Royal Auctioneers and Garam Investments Auctioneers, the firms tasked with conducting the sale, the court’s green light means they can now move forward with what promises to be one of the most significant property auctions in recent Kenyan commercial history. Industry insiders expect intense bidding from deep-pocketed investors eager to snap up prime real estate at what they hope will be below-market prices.

The wider implications of this case extend beyond Hassan’s personal business interests. The Hass Petroleum Group has been a visible player in Kenya’s energy sector for years, operating fuel stations across the country and positioning itself as a homegrown competitor to multinational oil companies. The group’s potential financial distress raises questions about stability in the sector and the sustainability of aggressive business models built on substantial leverage.

Legal experts note that the Court of Appeal’s dismissal with costs adds insult to injury for Hassan. Not only has he lost the substantive case, but he must now pay the legal expenses incurred by Credit Bank Limited in defending against his appeal. These costs, while likely modest compared to the KSh 1.2 billion at stake, underscore the totality of his defeat.

As the dust settles on this bruising court battle, attention now turns to whether Hassan and his associated companies will attempt any further legal maneuvers to delay the inevitable or whether they will finally accept defeat and allow the auction to proceed. Legal observers suggest that further appeals at this stage would be futile given the comprehensive nature of the Court of Appeal’s dismissal.

The case serves as a stark reminder of the risks inherent in using valuable property as collateral for business loans. While such arrangements can fuel expansion and growth during good times, they can quickly become existential threats when cash flows tighten and loan obligations cannot be met.

For Credit Bank Limited, the ruling represents vindication of its rights as a lender and sends a clear message to other borrowers about the consequences of default. The bank can now proceed to recover its funds through the auction process, although whether the property will fetch its full KSh 1.2 billion valuation in a competitive sale remains to be seen.

As the gavel prepares to fall on this prime Upper Hill property, Abdinasir Ali Hassan must confront an uncomfortable new reality. The business empire he built is facing its gravest challenge, and the courts have made clear they will not intervene to save him from the consequences of financial decisions made years ago.