Finance Bank Malawi will know the fate of its record K1.1 trillion compensation claim within the next 21 days. This follows the conclusion of the hearing of the assessment in Blantyre. The claim stems from the Supreme Court's ruling on February 3, 2026, that the Reserve Bank of Malawi's decision to revoke Finance Bank's licence in 2005 was unconstitutional.
The Supreme Court of Appeal assistant registrar, Ibrahim Hussein, indicated that the ruling could be delivered in 21 days after hearing final oral submissions from parties to the case. Finance Bank's lawyer, Modecai Msisha, argued that the Supreme Court's order for damages to be assessed did not imply doubt on wrongdoing. He stated that wrongdoing leads to consequences, including payment of damages.
Msisha claimed that the bank quantified its damages, which arose from the court order. He also requested the court to consider projected losses from the business that came to a standstill after the revocation of the licence. The bank relied on evidence from Nkhuzo Kuwani, a financial adviser, who testified that forensic reconstruction put lost profits at $134 million, while a National Bank comparison produced $551 million.
However, the Reserve Bank of Malawi's lawyer, James Masumbu, countered that Kuwani disclosed his role was connected to the shareholders. Masumbu also argued that the Supreme Court's order did not mean all grounds of appeal had been granted. Another lawyer, Patrice Nkhono, stated that the bank's licence was reinstated in 2006, and it should not seek damages beyond that period.
The Attorney General, Frank Mbeta, expressed concerns about speculation surrounding the evidence the Supreme Court accepted due to the absence of a full judgement since the ruling in February. Mbeta noted that the court emphasized the burden of proof lies on the claimants to prove actual damage. The licence was reinstated before the bank went into voluntary liquidation.
The case began in May 2005 when Finance Bank counterclaimed for loss of business after revocation of its banking licence. In October 2014, the High Court of Malawi awarded the Reserve Bank of Malawi K13 million and dismissed Finance Bank's counterclaim. After the revocation of its licence, the bank briefly resumed banking operations before closing permanently in January 2006.
The outcome of the case will determine whether Finance Bank will receive K1.1 trillion in damages. The bank's claim is based on losses incurred due to the revocation of its licence. The Supreme Court's ruling will have significant implications for the banking sector in Malawi.
Key points
- Finance Bank's K1.1 trillion claim will be determined within 21 days
- The claim stems from the Supreme Court's ruling that the Reserve Bank of Malawi's decision to revoke Finance Bank's licence was unconstitutional
- The case has been ongoing since May 2005 when Finance Bank counterclaimed for loss of business after revocation of its banking licence
