The High Court rejected a petition to liquidate investment firm Genghis Capital, clarifying that a Sh10.8 million dispute involves a separate trust fund rather than the company itself. The ruling came in a 2019 case involving clients whose funds were held in the collapsed Chase Bank.
Justice Mary Kasango determined that King County Limited and Murithi Wanjau invested their money through the Genghis Capital Unit Trust Fund, not the company. The court found no direct financial link between Genghis Capital and the disputed assets, emphasizing the distinction between the firm and the trust structure.
Petitioners claimed Genghis Capital owed Sh10.8 million plus 16.65% interest, but the firm argued the funds were managed by British American Asset Managers with Chase Bank as custodian. Genghis Capital highlighted that Murithi Wanjau deposited Sh8.5 million in a Chase Bank account in November 2015 through its agency, reinforcing the separation between the trust and company operations.
The court's decision underscores that the investment trust and Genghis Capital operate as distinct entities, with responsibility for the funds resting with the trust's manager and custodian. The case highlights legal complexities in corporate liability when funds are channeled through structured investment vehicles.
