Corporate lender Citibank Kenya has refuted claims made by a client in letters to the bank and to the Central Bank of Kenya (CBK) that it breached its fiduciary duties.
- •In a letter to CBK dated May 3rd, Adrian Kenya Ltd Managing Director Bernard Wachai Njoroge accused Citi of breach of contract and regulatory violations.
- •According to the company, Citibank withheld letters of credit in at least two instances where Adrian had signed contracts worth more than KSh. 100 million.
- •Adrian Kenya also accuses the lender of intentionally withholding funds, breaching its fiduciary duty and violating some CBK’s prudential guidelines including data protection laws.
In the letter addressed to CBK and seen by The Kenyan Wall Street, Njoroge says that the two entities entered into a contract in 2018, when Adrian Kenya opened operational accounts at Citi and obtained credit facilities totalling USD 14.7mn. He argues that despite the credit facility not being in arrears, the lender has, among other things, withheld funds and caused economic losses.
“We acknowledge receipt of Adrian Kenya Ltd’s letter that highlights various concerns they claim to have regarding their banking relationship with Citi Kenya,” a Citibank spokesperson wrote in a response to an email from The Kenyan Wall Street, “Upon careful review, we can confirm that the allegations therein are inaccurate and/or based on the wrong interpretation of facts.”
Adrian Kenya, which was founded in 2013, is “a leading provider of technology and EPC solutions in Africa with clients in telecoms, ICT, Energy, Olla and Gas Sectors,” according to its LinkedIn profile. The company says that the strained relationship with Citi led to the cancellation of contracts worth KSh 231.2 million, and presents potential losses of Kshs. 229 million.
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