Kenya Case Law

Kenya Programmes for Sustainable Development v Cfc Stanbic Bank Limited

Kenya Programmes for Sustainable Development v Cfc Stanbic Bank Limited [2017] KEHC 9214 (KLR)

Court

High Court

Case number

Civil Suit 682 of 2009

The court found that while the bank was not obliged to act on stop payment instructions that did not comply with the mandate (i.e., not signed by all three authorized signatories), the bank was nevertheless put on notice by the unusual circumstances—specifically, the chairman, who was also a signatory to the cheque, issuing instructions to stop payment. This inconsistency should have prompted the bank to make further inquiries before honouring the cheque. The bank's failure to do so amounted to a breach of its duty of care to the customer. However, the plaintiff was also found to have contrib…

Source excerpt

• Bank Customer Duties
• Negligence
• Mandate Of Signatories
• Stop Payment Instructions

KENYA PROGRAMMES FOR SUSTAINABLE DEVELOPMENT v CFC STANBIC BANK LIMITED

KENYA PROGRAMMES FOR SUSTAINABLE DEVELOPMENT v CFC STANBIC BANK LIMITED [2010] KEHC 1479 (KLR)

Court

High Court

Case number

Civil Case 682 of 2009

Judge

FI Koome

The High Court dismissed a bank customer’s summary judgment application over a disputed stop-payment instruction, holding that triable issues required trial.

• Summary Judgment
• Negligence By Banks
• Liquidated Claims
• Duty Of Care
• Mandate Of Signatories
• Stop Payment Instructions