KENYA’s UBA BANK SUES JYOTI
KETRACO and Jyoti sued by UBA to avoid liquidity
UBA Bank in Kenya has sued Jyoti Structures an Indian firm and Kenya Electricity Transmission Company Limited (KETRACO). The suit is because of the danger of losing the money advanced to both companies.
The Bank is in liquidation, trying to recover over US$2.6 million it supported Jyoti with to build Isinya-Suswa electricity transmission line.
A court order restraining KETRACO from making payments to the ailing firm unless done through the Bank.
KETRACO ensured the bank that all payments to the firm will go through the Indian firm’s account with the bank.
However, in December 2016 this agreement was violated when KETRACO made payments to Jyoti through a Diamond Trust Bank.
Also, Jyoti made another payment From Tanzania Electric Supply company Limited to another Bank ignoring the earlier agreement.