Court Blocks Full Unfreezing of Yusuf Investments Accounts in Amaryllis Hotel Case
Misryoum reports the High Court refused to fully unfreeze Yusuf Investments’ accounts tied to the Amaryllis Hotel purchase as the ACB investigation continues.
A High Court decision has kept major funds locked away, refusing Yusuf Investments’ bid for a complete unfreeze of accounts tied to the Amaryllis Hotel deal.
The ruling, delivered in Miscellaneous Application No.. 03 of 2026, was issued by Justice R.E.. Kapindu, who declined to lift restrictions fully on accounts linked to the purchase of the Amaryllis Hotel by the Public Service Pension Trust Fund (PSPTF).. Yusuf Investments had asked for the restrictions to be removed entirely, but the court found that doing so could interfere with work underway by the Anti-Corruption Bureau (ACB) and the Financial Intelligence Authority (FIA).. In Misryoum’s view, the court’s reasoning focused on ensuring investigators have enough room to trace suspicious financial movement without premature disruption.
Justice Kapindu said lifting the restrictions completely could risk undermining investigations into alleged financial crimes and illicit financial flows.. The judge highlighted concerns that countries continue to lose substantial resources through such schemes, and stressed that investigative agencies should be allowed to follow transactions that may not be immediately explainable.. While Yusuf Investments argued for full access, the court maintained that the status quo should remain until investigative processes conclude.
Misryoum notes that this kind of balancing act often defines outcomes in cases involving public funds and complex transactions, where timing can matter as much as the underlying allegations.
At the centre of the dispute is PSPTF, a statutory pension fund responsible for protecting public servants’ retirement savings, and its acquisition of the hotel from Yusuf Investments.. Court materials indicate that between 12 and 22 January 2026, Yusuf Investments received MK90.125 billion from PSPTF for the transaction.. Investigators then pointed to later movements and withdrawals that they considered suspicious, including transfers recorded across February and March 2026 and withdrawals through cheques during that period.
Because of those concerns, Restriction Notices were issued in March 2026 to prevent the possible dissipation of assets while investigations into alleged money laundering and corruption are ongoing.. Yusuf Investments, represented by lawyer Gabriel Kambale, argued that the freezes amount to “commercial strangulation” and claimed the state went beyond what was necessary.
Meanwhile, Yusuf Investments’ CEO, Yusuf Shiraz Yusuf, told the court that the restrictions were severely affecting hotel operations and could put roughly 195 employees at risk.. The company also sought to portray the freezing as an overreach against property rights, arguing that the measures were too harsh for a commercial business.
The court did not agree to full release.. Instead, Justice Kapindu allowed limited access to two operational accounts so the hotel could continue functioning.. However, the principal accounts holding the bulk of the disputed funds were kept frozen, with the judge rejecting arguments that the restrictions were arbitrary deprivation of property.. Misryoum interprets this as a compromise designed to protect both investigative integrity and day-to-day functioning.
The decision also touched on allegations about the hotel’s valuation, with claims that the price could have been inflated from MK47 billion to as high as MK145 billion.. Justice Kapindu ruled that such concerns require full investigation before any permanent release of funds is considered.. Costs were awarded to the respondents, adding a further setback for Yusuf Investments as the ACB continues its fact-finding mission.
In the end, the message is clear: Misryoum says courts are likely to keep their hands on restrictions when investigative tracks are still active, especially where public accountability and complex financial trails are at stake.