This archive report was first published on 2 July 2019.
On July 2, 2019, a court case was filed against Sidian Bank, owned by Centum Investment Company, for allegedly causing the demise of Golden Services Organisation's (GSO) table banking services on the Coast.
GSO, a microfinance business, claimed that Sidian Bank had approved a Sh50 million loan, which it failed to disburse, leading to its collapse and resulting in losses of Sh140 million.
However, Sidian Bank's credit manager, Collins Sabatia, testified in court that the bank had not approved the loan, contradicting GSO's claims.
'The bank had not yet approved the said facility, leave alone agreeing to disburse the money,' Sabatia told Environment Lands Court Judge Anne Omollo.
Sabatia argued that it was illogical for GSO to base its business model and cash flow projections on a loan request that was still pending approval.
'The plaintiff cannot therefore hold the bank liable for the perceived losses or special damages arising as a consequence of the plaintiff's allegedly impaired lending operations,' Sabatia said.
