CBK governor summoned over Sh970m dispute
The High Court directed the CBK governor to show cause on June 3, after AfrAsia Bank Ltd, the Mauritian lender, demanded payment of its money.
The Central Bank of Kenya (CBK) Governor Kamau Thugge has been ordered to appear in court to explain why funds worth Sh970 million deposited by a Mauritian lender at the now-collapsed Chase Bank should not be used to clear an outstanding debt.
The High Court directed the CBK governor to show cause on June 3, after AfrAsia Bank Ltd, the Mauritian lender, demanded payment of its money, which has been held by CBK since Chase Bank was placed under receivership in April 2016.
AfrAsia Bank deposited $7.5 million (about Sh970 million) with Chase Bank in March 2016 at a 2.3 percent interest rate for one month.
The deposit was due to mature on April 18, 2016, but Chase Bank was placed under receivership on April 7, 2016, before the money could be paid back.
Chase Bank was later acquired by SBM Bank (Kenya) Ltd. AfrAsia wrote to Chase Bank on May 6, 2016, about the unpaid amount.
Chase Bank allegedly acknowledged the debt and promised to reinvest the money for nine months. When the money was not returned, AfrAsia took legal action to recover it.
In the latest court filing, AfrAsia seeks an order allowing the court to attach any money belonging to SBM Bank held by CBK to settle the debt.
"The Garnishee, Central Bank of Kenya, through its Governor, to appear before the court on 3.6.25 to show cause why sums of money in the account of the judgment-debtor herein should not be attached and paid toward satisfaction of the decree herein.” The amount owed has since grown to nearly $14 million (Sh1.8 billion)," Justice Francis Gikonyo said.
