Stanchart bank given 14 days to respond to Savula's Sh1.8 billion claim

The High Court has granted Standard Chartered 14 days to respond to a case filed by a company associated with Kakamega County Deputy Governor Ayub Savula.

Justice  Francis Gikonyo issued the orders after the lender asked the court for more time to file their witness statements and serve Sunday Publishers.

In the case, Sunday Publishers told the court that it had an active account with the bank, which was allegedly closed without a notification or a court order.

It added that things were allegedly okay until its directors, Savula and Hellen Jeptor, were charged before the court in 2022.

“Plaintiff pleads and avers that sometimes in December 2022 whilst in the course if carrying out its banking business through the said account at the Defendants Kenyatta Branch, it learnt that the defendant had without prior notification to the plaintiff suspended and or froze banking transactions to the said account number and upon inquiry the plaintiff was notified by the defendant's officers that indeed the defendant had frozen the account due to adverse publicity,” argued the publisher’s lawyer Stephen Bundotich.

The lawyer further stated that even when his clients sought an explanation, the bank allegedly failed to give a reason.

He told the court that Sunday Publishers was condemned unheard.

The lawyer added that it also allegedly supplied a statement on the account’s transaction to the Directorate of Criminal Investigations (DCI) without informing the company’s directors or a court

“It is the Plaintiff's position and contention that the Defendant unprocedurally, unlawfully and or illegally furnished to the Directorate of Criminal Investigations and Director of Public Prosecutions the statement of account number in blatant breach of Bank-Customer right of confidentiality,” argued Bundotich.

The lawyer asserted that the move by the bank allegedly triggered investigations by the Kenya Revenue Authority (KRA) against his client, which claimed Sh 437 million on the strength of the contested statements.

He stated that Savula and Jeptoo were dragged to court and in the media with a claim of alleged Sh 2.5 billion theft, while the account was allegedly frozen.

According to him, the company allegedly lost its customers, while Savula allegedly dropped his governorship bid.

Bundotich urged the court to order the bank to compensate the company to the tune of Sh 1.8 billion.

In his supporting affidavit, Savula claimed that the company was earning close to Sh 300 million yearly. According to him, when the account was allegedly frozen, things allegedly went south, including servicing a Sh 61.6 million.

He maintained that there was no solid reason for the bank to allegedly terminate its relationship with Sunday Publishers without notice.

The politician stated that he personally visited the bank to check whether the account was still active, while hoping that the company would be paid by the Ministry of Information.

Nevertheless, he said, he got a shocker as the bank had allegedly barred him from transacting.

He told the court that he had to use another bank for the transaction.

“I am the one who personally visited the defendant’s Kenyatta Avenue Branch to notify them that the Plaintiff was expecting payment from the Ministry of Information Communication & Technology, and I wanted to ensure that the account had not been classified as dormant,” claimed Savula.

He claimed that the lender had violated the principle of treating customers fairly, adding that it should have been fair, transparent, and responsive throughout while dealing with the publisher.

Savula pointed an accusing finger at the lender for his and Jepto’s predicament.

He wants the court to order it to compensate the company.

“The plaintiff and its directors hold the defendant wholly liable for the loss of business and shall seek orders to hold the Defendant liable for breach of contract and for the defendant to be ordered to compensate the plaintiff for the losses suffered and pleaded herein before,” he said.

The case will be mentioned on November 18, 2026.