EX-KIAMBU GOVERNOR WILLIAM KABOGO WITH OTHERS ALLOWED TO RECOVER THEIR MONEY FROM FALLEN BANK.

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Former Kiambu Governor William Kabogo before court./FILE PHOTO BY S.A.N.

BY SAM ALFAN

Former Kiambu Governor William Kabogo and other depositors of Charterhouse Bank can now recover their money, which went down with the collapse of the bank.

Justice Dorah Chepkwony also allowed Kabogo to publish the case in two local dailies as a notice to all other depositors who wish to join the case.

“However, taking into account that the suit seeks to enforce depositors’ rights to be reinstituted of their deposits, it is inevitable that at some point the determination of the suit will bear some financial obligations and it is imperative that the depositor willing to be joined as plaintiffs give a written consent or authority to extend,” the judge said.

Charterhouse Bank was placed under statutory management in 2006.

Kabogo filed the case last year seeking to secure his deposits arguing that the he and other depositors were on the verge of losing their deposits and assets after Kenya Deposit Insurance Corporation (KDIC) started the process of liquidating the collapsed lender.

Justice Chepkwony rejected the application for the case to be a class action suit but said any willing depositor may join the case.

“However, any depositor willing to be joined as plaintiff in the suit is at liberty to apply to the court to be made a party and the plaintiff granted the liberty to advertise the suit so as to notify willing depositors to be joined in the suit,” the judge said.

Kabogo accused KDIC of ignoring the fact that depositors and creditors are special class protected by the Banking Act.

He said when CBK appointed Rose Detho as the manager in 2006, she issued a moratorium on all accounts held by depositors but assured them that interest would accrue on the deposits.

CBK and KDIC opposed the case saying a similar case, filed by the bank’s former directors is pending in court and the latest case was basically an attack on the earlier matter.

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