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Kenyan Business Feed
  • Home
  • News
    Government Finally Removes Matatu’s from Railways Bus Station

    Government Finally Removes Matatu’s from Railways Bus Station

    Sportpesa in Fresh Legal Tussle Over The Brand

    Sportpesa in Fresh Legal Tussle Over The Brand

    The 9th Africities summit Begins in Kisumu

    The 9th Africities summit Begins in Kisumu

    Deputy President Martha Karua

    Deputy President Martha Karua

    UAE President Sheikh Khalifa Bin Zayed Dies at 73

    UAE President Sheikh Khalifa Bin Zayed Dies at 73

    11,OOO Vehicles Already Registered to Use Express Way

    11,OOO Vehicles Already Registered to Use Express Way

    New business model program to firm up corporate-startup ties launched

    New business model program to firm up corporate-startup ties launched

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    Crypto firms approach KenGen seeking mining access

    Children Without IDs to Be Registered for M-Pesa

    Children Without IDs to Be Registered for M-Pesa

  • Markets
    South Africa’s wine Industry where Challenges are Solved with Technology

    South Africa’s wine Industry where Challenges are Solved with Technology

    Kenya to import maize from outside EAC to mitigate shortage

    Kenya to import maize from outside EAC to mitigate shortage

    Twiga Invests Ksh 1 billion To Scale Access To Affordable, High Quality Produce In Kenya

    Twiga Invests Ksh 1 billion To Scale Access To Affordable, High Quality Produce In Kenya

    CMA Issues Licenses Three Fund Managers

    CMA Issues Licenses Three Fund Managers

    CCI Global to occupy largest contact centre in Kenya at Tatu City

    CCI Global to occupy largest contact centre in Kenya at Tatu City

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    CMA licenses two Online Forex Trading Intermediaries

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    CMA licenses Embu Coffee Farmers Marketing Agency

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    BluePeak announces Ksh1.5 B Investment in Africure

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    Falling share prices raise banks dividend returns

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    Superior Homes Launches Reward Program for Investors

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    Report: High Demand for Luxury Houses in Nairobi Fueling Increase in Prices

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    Regional property summit kicks off in Nairobi

    Five Reasons Why Real Estate Increases in Value

    Five Reasons Why Real Estate Increases in Value

    Optiven Foundation Launches TVET Sponsorship Program

    Optiven Foundation Launches TVET Sponsorship Program

    How Optiven is making it Easy for Kenyans to Own Transformed Land for their Dream Homes

    How Optiven is making it Easy for Kenyans to Own Transformed Land for their Dream Homes

    International Firm to help Kenyans Buy Property in The UK

    International Firm to help Kenyans Buy Property in The UK

    Centum’s Tribus To Invest Sh137 Million On 10 Youth Employment Centres

    We’re sorry: Weekly Citizen humbles before Centum CEO

    How to Build a 3 Bedroom House With Less Than Ksh1 Million

    How to Build a 3 Bedroom House With Less Than Ksh1 Million

  • Tech
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    How to Secretly Leave a Whatsapp Group without Notification

    Tala Names Munyi Nthigah The New General Manager For Kenya

    Tala Names Munyi Nthigah The New General Manager For Kenya

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    Safaricom Partners with vivo Smartphone to List New 4G Enabled Devices in the Kenyan Market 

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    How new regulations are shaking up the world’s fastest sport

    President Uhuru Urges International Community to Lift Sanctions on Zimbabwe

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  • KBF
    • All
    • Agribusiness
    • Banking
    • Insurance
    • Manufacturing
    • Opinion
    South Africa’s wine Industry where Challenges are Solved with Technology

    South Africa’s wine Industry where Challenges are Solved with Technology

    Troubled Kenya Power appoints new interim MD to replace Rosemary Oduor

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    Balala Ministry to build toilets at the peak of Mt. Kenya

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Home KBF Banking

Bank ordered to pay Youth Enterprise Development Fund Sh177

by Montui
December 1, 2020
in Banking
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Rafiki Microfinance Bank

Youth Enterprise Development Fund (YEDF) has been given a go ahead to recover Sh176.5 million from Rafiki Microfinance Bank

Rafiki Microfinance Bank which was a part of the collapsed Chase Bank, has 21 days to honor the court order.

Rafiki is said to have breached the terms of contract by failing to issue the funds. Already, the Youth Fund board has notified Rafiki Microfinance Bank of possible forceful acquisition of its assets if it fails to pay the Sh176.5 million.

“Take further notice that we will commence liquidation proceedings against the bank unless the decretal sum is paid within the aforesaid statutory stipulated period without any reference to you,” read part of the notice.

Judge Francis Tuiyott of the Milimani Commercial Court, on October 5th, ruled that the bank had breached the contract terms agreed upon with its client, the Youth Enterprise Development Fund.

“It’s common ground that the bank is still in default and will have to suffer the penal interest ascribed in the contract,” judge Tuiyott ruled.

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The board of the Youth Enterprise Fund had granted the bank Ksh100 million and tasked it to lend the money to qualifying youth in accordance with the credit guarantee scheme policies.

One of the terms stated was that the bank was to provide a guarantee equivalent to Ksh 100 million. 

The bank enlisted was, however, put up under receivership by the Central Bank of Kenya (CBK) prompting the Youth Fund to demand that the bank provides another guarantee to the amount.

The youth fund alleges that the bank defaulted from this and hence was in breach of the contract terms.

It further accused the bank of issuing loans, on its behalf, to beneficiaries above the age prescribed in the policies. 

After the judgement ruled by the Milimani Commercial Court, the counsel for the Youth Fund, Philemon Morara noted that the bank should comply with the court orders.

She echoed the judge’s orders that the amount should be refunded with accrued interest as well as legal costs incurred over the past 4 years.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]

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