CS Hassan Joho Denies Owing SBM Bank KSh 54.5 Million in Loan Arrears
Mining Cabinet Secretary (CS) Ali Hassan Joho has denied claims by SBM Bank (Kenya) Ltd that he owes KSh 54.5 million in loan arrears.
In documents filed at the Mombasa High Court, Joho has asked the court to dismiss the lawsuit brought against him, terming it baseless and without factual merit. He is also seeking to have the case thrown out with costs awarded in his favour.
Joho stated that he took out a loan of KSh 40 million in January 2014 from Chase Bank (Kenya) Ltd, which was later placed under receivership. In 2018, SBM Bank took over the operations of the collapsed institution.
According to the CS, he repaid KSh 20.2 million through a law firm, reducing the outstanding loan balance to KSh 19.7 million. He further claimed that on July 22, 2016, another legal representative acting on his behalf wrote to the receiver manager of Chase Bank, confirming that the bank held KSh 23 million in his account. The letter instructed the manager to use those funds to offset the remaining loan amount.
Joho argued that by that date, he had settled a total of KSh 43.2 million—KSh 3.2 million more than the amount initially borrowed. He added that the total repayment exceeded the maximum permissible lending cost under Islamic banking principles, which governed the loan.
He also clarified that the account in question was held with Chase Bank and not SBM Bank, and insisted that the loan was fully paid and cleared of any arrears.
“The suit brought against the defendant lacks any factual foundation on which to stand,” stated Joho’s legal team in court.
In response, SBM Bank maintained that Joho had defaulted on the loan. The bank stated that the facility matured on January 3, 2024, and stopped accruing profit as required under Islamic banking regulations. Despite sending multiple demand notices, the bank claims Joho failed to respond or make any further payments, leaving the bank with no option but to file suit.
Joho, who disclosed during his Cabinet Secretary vetting that he holds assets worth KSh 2.3 billion, reiterated to the court that he does not owe the bank any money.
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CS Hassan Joho Denies Owing SBM Bank KSh 54.5 Million in Loan Arrears
