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Originally published by Capital Businessbusiness
November 14, 2025
4h ago
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.
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