SBM Bank gets three weeks to refund Sh900m deposit

SBM Bank

An SBM Bank on Mama Ngina Street in Nairobi.

Photo credit: File | Nation Media Group

Afrasia Bank has given SBM Bank (Kenya) three weeks to settle over Sh900 million that it had deposited in collapsed Chase Bank six years ago.

The Mauritian lender said in a newspaper ad that the money should be paid within 21 days’ failure to which, it will be forced to institute liquidation proceedings against SBM Bank.

The move arises from a court battle which Afrasia won last month after the High Court ruled that SBM is culpable for all liabilities of Chase Bank –which it acquired in 2018— including the monies deposited by Afrasia Bank.

The judge said the Transfer of Business Act was applicable in the deal and since SBM did not publish the mandatory notice under the law, it is liable for all Chase Bank dues.

The notice said the money $7.5 million (Sh904 million) plus interest of $16645 (Sh2 million) should be paid in Mauritius or its lawyers Githii & Co Advocates.

“Further take notice that failure to pay the afore-stated amount shall result in Afrasia Bank limited filing for a liquidation order against the company,” the notice dated September 19 stated.

In a ruling last month, Justice Wilfrida Okwany said SBM Bank is liable for all liabilities of Chase Bank including the claim made by Afrasia and therefore has to shoulder burden.

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