Guaranty Trust Bank (GT Bank) Kenya has confirmed it has filed an appeal with the Competition Tribunal, challenging a decision by the Competition Authority of Kenya (CAK) that imposed financial penalties and ordered customer refunds.
Bank’s Position
In a statement, GT Bank said the matter is now sub judice, making it inappropriate to comment extensively while proceedings are pending. The lender maintained that its conduct in its banking relationship with ASL Limited was consistent with contractual obligations and compliant with applicable banking laws.
“The decision to appeal reflects the Bank’s view that the Authority’s findings are not supported by the facts and evidence presented during the investigation,” GT Bank said, adding that it values fair treatment of customers and expects the appellate process to allow fuller consideration of the matter.
CAK’s Findings
The appeal follows CAK’s directive ordering GT Bank to pay a Sh33.18 million penalty for what it termed false representation and unconscionable conduct against ASL. The regulator also directed the bank to refund Sh13.2 million in fees it said were improperly levied.
CAK said the probe was triggered by a complaint lodged by ASL in October 2024, citing unfair treatment in the management and renewal of its credit facilities. ASL has banked with GT Bank since 2001, holding facilities including overdrafts, letters of credit, guarantees, asset financing, and working capital support.
Dispute Over Credit Facilities
According to CAK, the dispute arose after GT Bank allegedly failed to provide a definitive reason for declining to renew ASL’s facilities in 2022. The bank later offered a three-month extension in June 2023, requiring additional security and revised terms including reducing one trading line from USD 5.5 million to USD 3.5 million.
CAK said the bank subsequently reduced the offer by a further USD 3 million, prompting ASL to consider moving to another lender. GT Bank then issued a formal default notice and levied Sh13.2 million in default interest, which ASL claimed was backdated.
GT Bank denied allegations of coercion, arguing that ASL’s failure to execute a July 2023 offer triggered contractual default provisions, and that the interest was not backdated.
Regulatory Decision
“Upon analyzing the evidentiary information, the Authority determined that GT Bank violated Section 55(a)(ii) of the Competition Act on false or misleading representation,” CAK said.
Conclusion
The case now moves to the Competition Tribunal, where GT Bank hopes to overturn CAK’s findings. The outcome will be closely watched by Kenya’s financial sector, given its implications for banking practices, regulatory oversight, and customer protection.
