Court of Appeal clears Air Afrik’s suit to proceed after Stanbic Bank’s failed bid to stop trial over $20M frozen account and South Sudan lease fallout.
Stanbic Bank Loses Bid to Halt Air Afrik’s $20M Lawsuit
[Nairobi, Kenya – July 2025] – The Court of Appeal has rejected an application by Stanbic Bank Kenya seeking to stop a High Court trial over a longstanding legal dispute with Air Afrik Aviation Ltd involving the loss of a $20 million aircraft lease contract.
Background: Frozen Accounts and Lost Contract
Air Afrik alleges that in 2016, Stanbic Bank froze its bank accounts and unlawfully deducted funds. The airline claims this led to the Government of South Sudan canceling a $20 million aircraft leasing agreement, resulting in massive financial losses.
Appellate Court’s Verdict
Appellate Judges Mumbi Ngugi, Pauline Nyamweya, and Weldon Korir ruled that while Stanbic had an arguable appeal, it failed to prove that proceeding with the High Court trial would make the appeal ineffective.
“The matter is at an advanced stage and if the appeal succeeds, remedies such as a rehearing are still available,” the judges stated.
CEO Summoned in South Sudan
In December 2024, Stanbic CEO Joshua Oigara was summoned by South Sudan’s Public Prosecution Attorney to respond to issues arising from the dispute—escalating the matter to the diplomatic level.
Recusal Motion Denied
Stanbic Bank had earlier sought the recusal of High Court Judge Nixon Sifuna, arguing potential bias. The request was denied, prompting Stanbic’s application at the Court of Appeal.
With the appellate ruling, the case now proceeds at the High Court of Kenya where Air Afrik is seeking damages and reliefs.
🔍 Quick Facts for SEO:
Latest Ruling: July 2025 – Case proceeds to trial
Case: Air Afrik Aviation Ltd vs. Stanbic Bank Kenya
Claim: Unlawful freezing of accounts and contract cancellation worth $20M
Court: Court of Appeal of Kenya
Year Lawsuit Began: 2016
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