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The Court of Appeal threw out a case filed by Okanda Finance and Okanda Investments against Central Bank, and awarded costs to the financial regulator.
Okanda Finance and Okanda Investments had challenged the Central Bank's Director of non-banking financial institution’s powers to probe their accounts and business activities.
Both companies alleged that they were not deposit taking institutions and therefore didn’t fall under Central Bank’s supervision.
But the Central Bank argued that Okanda accepted public funds under a ‘Credit Investment Scheme’ offering varying returns from 13 percent to 24 percent. Okanda was also alleged to offer working capital and short term loans to the public.
According to the draft financial statement submitted by Okanda Financ