Embattled Diamond Trust Bank Kenya is set to close 6 branches by the end of October 2021. DTB confirmed this move after it had received approval from the Central Bank of Kenya (CBK) to consolidate its branches. We highly anticipate that this was a strategic move by DTB after realizing that they had no escape route from the illegalities they committed in the currently ongoing case of Ham Vs DTB at the Court of Appeal in Uganda.
Kenyan born Bank Diamond Trust has revealed that it plans on adjusting its operations in the region with a move to close more than 5 branches by end of October 2021. This happens at a time when this bank is struggling with an ongoing Court of Appeal case where it disagreed with the earlier High Court Judgement that ordered them to pay Uganda Shillings 120Billion ($33.4Million) that was illegally withdrawn from Ham Enterprises business accounts over a spread period of time without consent.
According to the genesis of the historical case, Ham Enterprises U Ltd did not know about the DTB’s fraud and dubious activities on its accounts until on the November 14th 2019, when the bank surprisingly, demanded unknown sums. This compelled the Company to carry out an audit on all its accounts in respect to all their previously settled and ongoing loan facilities with the Bank by then.
On conclusion of the 10 year accounts audit, findings showed that DTB had over the years been unlawfully, fraudulently and irregularly without the company’s instructions debiting and recovering monies from Ham Enterprises U Ltd accounts in breach of the their contractual obligations. It was on this foundation that Ham Enterprises U Ltd took Diamond Trust Bank Uganda and Kenya to court to seek justice to recover the illegally debited money from the company’s accounts.
On top of illegally debiting Ham Enterprises U Ltd accounts, it was also discovered that DTB Kenya committed grave illegalities when they carried financial business operations in Uganda without a License from Bank of Uganda. Prior to these illegal operations, DTB Uganda lured their customer Ham Enterprises U Ltd into transactions with DTB Kenya, a bank that did not have the legal requirements to carry out financial business in Uganda.
On 7th October 2020, the High Court ordered DTB to pay Ham Enterprises U Ltd the unlawfully debited amounts of UGX 120billion, Legal fees and UGX 9.6billion interest per year. The 120billion was not a reward to Ham Enterprises from the case that DTB lost due to illegalities of DTB Kenya operating in Uganda without a license but it is an accumulated amount that DTB has been debiting from Ham Enterprises U Ltd accounts over a spread period of 10 years. Diamond Trust Bank Uganda and Kenya disagreed with the High Court Judgement and appealed in the Uganda Court of Appeal. The hearing of the Ham Vs DTB case was adjourned to 17th March 2021.
The latest update that our sources have confirmed is that Diamond Trust Bank Kenya is set to close 6 branches in Kenya by the end of October 2021. DTB confirmed this move after it had received approval from the Central Bank of Kenya (CBK) to consolidate its branches. We highly anticipate that this was a strategic move by DTB after realizing that they had no escape route from the illegalities they committed in the currently ongoing case of Ham Vs DTB at the Court of Appeal in Uganda.
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