Co-op Bank demands Sh862mn in debt arrears from Sony Sugar
In a notification dated July 14, 2026 and addressed to the company's Chief Executive Officer, the bank said it would exercise its statutory power of sale over Land Reference No. 16339/1 unless Sony Sugar clears the outstanding amount within 40 days of being served with the notice.
On August 20, Co-operative Bank of Kenya has given Sony Sugar a 40-day statutory notice to settle a debt of Sh862.3 million. The bank intends to auction a property owned by Sony Sugar to recover the outstanding amount if the company fails to clear the debt within the given timeframe. The notice, issued on July 14, 2026, is based on the Land Act, 2012, which outlines the process lenders must follow when a borrower defaults on a loan.
Co-operative Bank claims Sony Sugar owes it a total of Sh862,328,980.41 for a lending facility. Despite receiving a notice on August 13, 2025, Sony Sugar has not rectified the default and continues to owe the bank the sum. The bank will proceed with the sale of the property after the 40-day period expires unless Sony Sugar settles the outstanding balance in full.
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