Equity Bank’s Juba branch is facing a formal legal threat over its inability to release cash to a customer, a dispute that exemplifies South Sudan’s deepening liquidity crisis.
- •A demand notice issued last week and seen by The Kenyan Wall Street, accuses the Kenyan-affiliated bank of breaching core banking obligations by denying access to deposited funds and warns of imminent civil action if the matter is not resolved within seven days.
- •The notice, filed by Pan African Law Chambers LLP, a Juba-based law firm acting for a private client named Jan Yamba Justin, alleges sustained operational and professional harm caused by the bank’s failure to honor withdrawal requests.
- •Petroleum, which accounts for roughly 80% of South Sudan’s economy, has been hit hard by conflict in neighboring Sudan thus disrupting exports and reducing dollar inflows.
“Our clients have been unlawfully deprived of the full and unhindered enjoyment of their lawful banking rights, disrupting professional operations and personal obligations,” the notice signed by advocate Wani Santino Jada said.
“Equity Bank’s serious, continuing, and unjustified acts and/or omissions have led to grave operational disruption, financial prejudice, professional embarrassment, and reputational harm,” it continued. It further warns that unless the bank takes action within seven days, a 13-member legal team will initiate civil proceedings seeking damages, costs, and nearly US$4 million in advocate fees.
South Sudan has faced a persistent liquidity crisis and commercial banks have responded by imposing daily withdrawal limits of less than US$10 (approximately 50,000 SSPs) and suspended ATM withdrawals in many areas. The resulting cash crunch has severely affected businesses that rely on imports from neighboring countries like Kenya and Uganda.
Meanwhile, the South Sudanese government attributes part of the problem to “unscrupulous individuals” hoarding money and lack of co-ordination between the finance ministry and central bank. In September last year, the Central Bank of South Sudan warned against currency hoarding and threatened prosecution for noncompliance.
Since the crisis began, the country's president Salva Kiir has fired five Central Bank governors in a desperate quest to find the right man for a solution. This has done little to alleviate the cash shortage and regain trust in the country's banking system.
Two of Kenya's largest banks by assets, KCB and Equity, operate in the country. The latest financial results by Equity Group show that profits from the South Sudanese subsidiary fell by 88% to KSh 0.1 billion in Q3 2025. The bank's total revenues in South Sudan also stood at KSh 1.2 billion, the lowest compared to other regional subsidiaries.
