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Westgate owners tussle with bank over loan

The restoration of Westgate shopping mall has hit a snag following a tussle between its owners and Kenya Commercial Bank over a loan repayment stalemate.

The shopping mall was insured against acts of terrorism, loss of rental income and third party.

According to Alex Trachtenburg, a director of Sony Holdings Limited which owns the shopping mall, they have received sh600 million as insurance compensation for restoration of the building, but KCB wants the amount to be used for loan repayment.

Speaking during the third day of public hearings by Committee for the Rapid Restoration of Westgate Mall, Mr Trachtenburg argued that KCB is supposed to be paid from the rental income loss compensation which has not yet come through.

Meanwhile, Nakumatt Westgate branch manager David Muturi said the store had lost sh1 billion worth of stock during the September 2013 terror attack.

The retailer has however received sh1 billion from its insurer.