NAIROBI, Kenya, Feb 24 – Guaranty Trust Bank has appealed a decision by the Competition Authority of Kenya (CAK) that fined the lender Sh33.18 million for what the regulator termed false and misleading representations in its dealings with long-time customer ASL Limited.
The bank confirmed Tuesday that it has moved to the Competition Tribunal to challenge the January 29 ruling, which also directed it to refund Sh13.21 million in fees and charges to ASL.
The dispute stems from a complaint lodged in October 2024 by ASL, a Kenyan manufacturer and distributor in the construction and industrial sectors. The firm accused the lender of unfair treatment in the management and renewal of its credit facilities.
The lender, in a statement, said it disagrees with the regulator’s findings and will let the appellate process run its course.
“The Bank’s conduct throughout its banking relationship with ASL Limited was, at all times, consistent with its contractual obligations governing facilities granted to ASL Limited and in compliance with applicable banking laws and regulations.”
“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.”
The matter is now before the Competition Tribunal, with the bank saying it will refrain from further comment while the case is pending.
In its decision released on February 24, 2026, CAK found that the bank’s actions met the threshold for false or misleading representation and unconscionable conduct under Sections 55 and 57 of the Competition Act.
ASL had banked with GT Bank since 2001 and secured multiple facilities in July 2021, including overdrafts, letters of credit, guarantees and asset financing. The facilities were due for review and renewal in May 2022.
According to the regulator, although ASL submitted its renewal request within the contractual timeline in January 2022, the bank did not provide a definitive position for months.
In June 2023, GT Bank offered a three-month extension with revised terms, including additional security and a reduction of a $5.5 million trading line to $3.5 million.
A subsequent offer letter in July further cut limits by $3 million.
ASL later indicated its intention to transfer its facilities to I&M Bank after finding the new terms untenable.
On October 31, 2023, ASL received a formal default notice and was charged Sh13.2 million in default interest, allegedly backdated to August 2023, during ongoing renewal discussions.
To facilitate a takeover by I&M Bank and avoid business disruption, ASL cleared overdraft balances of Sh417.8 million and $197,802.
CAK held that the manner and timing of the bank’s actions breached fair competition standards.
