Supreme Court rules banks need no new securities for extra loans
NAIROBI, Kenya, Nov 14 - The Supreme Court has handed a major win to lenders after ruling that banks are not required to register fresh securities every Kenya breaking news | Kenya news today |..
✨ Key Highlights
The Supreme Court of Kenya has ruled that banks are not required to register new securities for additional credit, a decision set to significantly reduce compliance costs and bolster confidence in long-term lending. This landmark judgment overturns a 2022 Court of Appeal ruling, providing a major win for lenders amidst rising regulatory pressures.
- The ruling stems from a dispute between Standard Chartered Financial Services Limited and Manchester Outfitters (Suiting Division).
- The Supreme Court affirmed that existing debentures or charges remain valid until formally discharged, even when restructuring or advancing subsequent facilities.
- The case involved a Euro Currency Loan from 1982, later converted to a Sh9 million local facility in 1987.
Continue Reading
Read the complete article from Capital Business
Part of the Day's Coverage
Kenyan Authorities Announce Crypto Regulations, Supreme Court Ruling on Loans, and Measures Against Cartels - November 2025
Kenyan authorities have taken several actions related to economic regulation. Kenya and Ghana introduced new regulatory frameworks for virtual asset service providers (VASP) to combat fraud and improve transaction traceability. In a landmark judgment, the Supreme Court of Kenya has ruled that banks are not required to register new securities for additional credit, a decision which overturns a 2022 Court of Appeal ruling. The ruling is expected to reduce compliance costs for lenders. Additionally, the Director-General at the Competition Authority of Kenya (CAK), David Kemei, described cartels as an "invisible tax" on consumers. In response, the CAK is intensifying its efforts to combat cartel behavior across various sectors.
