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Controversial Businessman Paul Kobia’s Lawsuit Against Central Bank Thrown Out

paul kobia
Controversial Businessman Paul Kobia. [Courtesy]

A commercial court has thrown out the lawsuit filed by controversial businessman Paul Kobia against the Central Bank of Kenya. Kobia had filed the suit after a local bank decline to have him bank with them.

In a ruling by Commercial Court Judge, Justice Wilfrida Okwany, there is insufficient evidence against CBK to justify the lawsuit filed by Kobia.

“Looking at the letter in question, this court is unable to find nexus between the threatened closure of the petitioner’s bank accounts and any action by the respondents herein so as to justify the granting of the orders sought in the petition,” the judge ruled.

Read: City Businessman Paul Kobia Suffers Blow As Barclays Bank Closes Accounts

For instance, last year in April, Kobia was among the victims of the new banking regulatory rules where Barclays Bank closed his accounts.

In a letter addressed to Kobia, Barclays Bank informed the city businessman that the lender had cut ties with him from January 14, 2019. The bank revealed that the decision was made “following a review of our business.”

In the letter, Barclays also stated that it had also ceased to offer Mr Kobia investment services.

The bank noted: “Any funds received in your favour after the closure will be returned to the remitter. We cannot, however, guarantee that such funds will be resent to you by the remitter.

Read Also: Controversial Businessman Paul Kobia Released On Ksh100,000 Cash Bail

The tycoon thus sued CBK and the Attorney General citing that they instructed the local banks to turn his money away and close his accounts.

In his argument, Kobia intimated that the aforementioned had interfered with the normal operations of the bank and how it should conduct business.

“We have decided to close your accounts or products with effect from January 14, 2019,” read a statement from the bank.

Read Also: Detectives Raid Controversial Businessman Paul Kobia’s Riverside Offices

In his defence, the businessman argued that his businesses have never been under scrutiny for any crime-related activities thus indicating that his money is legit.

Kobia has been very controversial and has on several occasions clashed with relevant authorities.

In an incidence last year, he was arrested alongside 13 others for obtaining money under false pretence in a gold scam.

He was however released on Sh100,000 cash bail.

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Written by Mercy Auma

Passionate about human interest stories and politics. Email news@kahawatungu.com

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