Statement On The Statutory Demand By Afrasia Bank Limited Against SBM Bank (Kenya) Limited
Reference is made to a Statutory Demand published in the Daily Nation newspaper of 23rd September 2022, by Afrasia Bank Limited against SBM Bank ( Kenya) Limited ( “SBM” ).
This purported Demand arose from a suit filed by Afrasia Bank against SBM demanding payment of USD 7.5 million plus interest which Afrasia Bank had placed in Chase Bank (Kenya) Limited, in March 2016. Subsequently, Chase Bank (Kenya) Limited was placed under receivership by the Central Bank of Kenya on 7th April 2016.
The said funds belonging to Afrasia Bank were not part of the liabilities which were assumed by SBM Bank (Kenya) Limited in August 2018. The funds remained with Chase Bank (Kenya) Limited (then in Receivership and currently under Liquidation) under the management of the Kenya Deposit Insurance Corporation.
On 21st July, 2022, the High Court issued a Judgment in favour of Afrasia Bank. SBM has already lodged an appeal in the Court of Appeal against the decision of the High Court.
Against this background, the published purported Statutory Demand by Afrasia Bank is unlawful and malicious and SBM’s lawyers have already issued a Demand Letter to Afrasia Bank to immediately publish a notice of retraction by 24th September, 2022 with equal prominence as Afrasia’s publication. In default thereof, the SBM lawyers shall initiate legal proceedings against Afrasia Bank, holding them responsible for all the consequences arising from their unlawful Statutory Demand. We have also instructed our lawyers to make an application to the Court to strike out Afrasia’s Statutory Demand.