All is not well at the Kenya Commercial Bank (KCB) Uganda as an impending legal suit could force the bank to lose Shs120 million for closing a company’s account without informing management as spelt out in the law that governs commercial banks in Uganda.
The company in the names of Our Lady of Lourdes Limited, represented by Oscar Associated Advocates (OAA), is up in arms against KCB for closing its account No.2202588639 which it opened to transact business with its clients.
“Our client opened up a company account with your bank for purposes of transactions with its clients. However our client presented two cheques of Regal Paints (U) Limited amounting to Shs47, 300,000 (Forty seven million three hundred thousand shillings) for payment at your bank, he was told that the said account had been closed,” OAA continue saying in the letter.
“It should further be noted that the said account was closed without any notice to our client as required by law and this has caused our client a lot of financial loss for which you are liable in damages,” OAA said in a letter it sent to KCB on May 12,218.
The OAA lawyers further say that KCB’s failure to clear a cheque of Shs45 million to date has further caused loss of business to their client ‘given the fact that his goods are still stuck at Mombasa.”
The OAA lawyers also want an extra Shs10 million as legal fees, should KCB fail to respond as soon as possible to settle the matter.