Central Bank of Kenya.[Photo/the-star.co.ke]
Central Bank of Kenya (CBK) will no longer be stopped by the High Court from placing a bank under receivership or liquidation.
A ruling by the Court of Appeal on Friday took away the powers of the courts to issue an injunction in bank liquidation process in a decision that stamps CBK as the only competent authority on receiverships, liquidation and winding up.
Ruling in a case filed by Central Bank and Kenya Deposit Insurance Corporation (KDIC) challenging a decision by the High Court to reverse the liquidation process of Dubai Bank, the appeal court ruled that Justice Eric Ogola, who had issued orders reversing the bank’s liquidation, had overstepped his powers.
“In issuing the orders as it did, the court overstepped beyond the aptitude of its powers. It substituted itself in place of CBK,” said the three judges comprising Justice EM Githinji, GBM Kariuki, and Sankale ole Kantai.
This comes in the midst of several previous an injunction by the courts that have rendered its progress.