Collapsed Moi-era lenders sue State for Sh7.3bn payout

Two lending institutions that were placed under statutory management during retired President Daniel Moi’s era have sued the Attorney General for Sh7.3 billion, arguing that the move was part of a looting scheme by government officials.

Capital Finance Limited (CFL) and Pioneer Building Society (PBS) say in court papers that the then Registrar of Building Society placed them under receivership in November 1986 as part of a scheme to forcibly acquire their assets, which would have been worth Sh7.3 billion today.