Kenyan entrepreneur Ashok Doshi has withdrawn his longstanding lawsuit against the Central Bank of Kenya (CBK) concerning the liquidation of Imperial Bank, following an out-of-court settlement.
The dispute originally focused on CBK’s 2021 appointment of the Kenya Deposit Insurance Corporation (KDIC) as the bank’s liquidator. Doshi contended the move was unlawful, claiming the receivership period had expired. CBK, however, maintained that the receivership and deposit moratorium were still active and that the appointment adhered to statutory procedures. The High Court has now formally recognised the consent, marking the case as withdrawn with no order for costs.
The case had been ongoing since 2018, when the High Court called for a fresh start due to procedural disagreements. At that time, Doshi was required to submit detailed statements and supporting documents, while CBK and Imperial Bank responded with relevant evidence. The dispute included disagreements over whether original bank statements or photocopies should be used, covering deposits exceeding KSh 920 million.
Also Read: Anti-Counterfeit Authority Chair Charged With Sh5 Million Bribery Claims
Doshi had argued that CBK had failed in its supervisory role, allowing mismanagement at Imperial Bank that exposed depositors to significant losses. Over time, the lawsuit evolved from a deposit recovery matter into a broader challenge of the legal framework governing bank liquidation.
By settling out of court, both parties avoided the risk of a precedent that could have undermined the regulator’s authority. A ruling in Doshi’s favour might have invalidated Imperial Bank’s liquidation, potentially triggering claims from other depositors.
Imperial Bank, which collapsed in 2015, remains one of Kenya’s largest banking failures, plagued by long-running insider lending and mismanagement.
