The High Court has granted Standard Chartered 14 days to respond to a case filed by Sunday Publishers, a company associated with Kakamega County Deputy Governor Ayub Savula. The case involves a claim of Sh1.8 billion, which the company alleges is owed due to the bank's alleged unlawful closure of its account. Justice Francis Gikonyo issued the orders after the lender asked the court for more time to file their witness statements and serve Sunday Publishers.
According to court documents, Sunday Publishers had an active account with Standard Chartered, which was allegedly closed without notification or a court order. The company's lawyer, Stephen Bundotich, argued that the bank's actions were unlawful and led to the company's directors, Savula and Hellen Jeptor, being charged in court in 2022. The lawyer claimed that the bank failed to give a reason for closing the account and instead supplied a statement on the account's transactions to the Directorate of Criminal Investigations (DCI) without informing the company's directors or a court.
Bundotich further argued that the bank's actions triggered investigations by the Kenya Revenue Authority (KRA) against his client, which claimed Sh437 million on the strength of the contested statements. He stated that Savula and Jeptoo were dragged to court and in the media with a claim of alleged Sh2.5 billion theft, while the account was allegedly frozen. The lawyer urged the court to order the bank to compensate the company to the tune of Sh1.8 billion.
In his supporting affidavit, Savula claimed that the company was earning close to Sh300 million yearly. He maintained that there was no solid reason for the bank to allegedly terminate its relationship with Sunday Publishers without notice. Savula stated that he personally visited the bank to check whether the account was still active, while hoping that the company would be paid by the Ministry of Information.
Savula pointed an accusing finger at the lender for his and Jepto's predicament. He wants the court to order it to compensate the company. The politician stated that the bank had allegedly barred him from transacting and that he had to use another bank for the transaction. He claimed that the lender had violated the principle of treating customers fairly.
The case will be mentioned on November 18, 2026. The court has given Standard Chartered 14 days to respond to the allegations. The bank's actions have been described as a breach of Bank-Customer right of confidentiality. The company's lawyer argued that the bank's actions led to the company's loss of business and reputation.
The outcome of the case will be closely watched by businesses and individuals who have dealings with Standard Chartered. The bank's response to the allegations will be crucial in determining the direction of the case. Key issues in the case include the bank's alleged unlawful closure of the company's account and its failure to give a reason for the closure.
Key points
- The High Court has granted Standard Chartered 14 days to respond to a case filed by Sunday Publishers.
- The case involves a claim of Sh1.8 billion, which the company alleges is owed due to the bank's alleged unlawful closure of its account.
- The bank's actions have been described as a breach of Bank-Customer right of confidentiality.
