Former Mombasa Governor Hassan Joho has distanced himself from a Sh54.5 million loan dispute with SBM Bank, asserting that he bears no personal liability in the ongoing financial tussle.
The development unfolded on Thursday, May 9, 2025, during court proceedings, where Joho challenged the bank’s efforts to recover the debt, insisting that the loan was secured by a company in which he is only a shareholder and not a guarantor.
The dispute stems from a credit facility extended by SBM Bank to Portside Freight Terminals Limited, a logistics firm linked to Joho. The bank claims that Joho and other directors should be held accountable for the unpaid loan. However, Joho’s legal team has argued that the former governor did not sign any personal guarantees for the loan and therefore cannot be sued in his capacity.
According to court documents, the bank is seeking to enforce repayment through legal action, naming Joho among the respondents. Joho’s lawyers are pushing for the case to be dismissed, terming the inclusion of his name in the suit as unlawful and without merit.
This case highlights the complex interplay between corporate borrowing and individual liability, particularly when high-profile public figures are involved in private sector ventures. The outcome could set a precedent on how financial institutions approach debt recovery in cases where shareholders are not direct guarantors.
The matter is now before the High Court, with both parties awaiting further directions as the legal battle unfolds.
