Kampala — DFCU Bank is confronting an unexpected backlash from the very growth story it once celebrated after taking over selected assets and liabilities of Crane Bank nearly a decade ago.
Customer numbers that the bank highlighted to show its expanded reach and market strength are now under scrutiny in a high-stakes lawsuit before the English High Court. The case, brought by parties linked to former Crane Bank owner Sudhir Ruparelia, challenges the legality and value of the 2017 transfer and seeks damages reported at more than £170 million (approximately Shs840 billion).
In the years after the Bank of Uganda placed Crane Bank under statutory management in 2016 and declared it insolvent, DFCU presented the acquisition as a transformative deal. The enlarged customer base, branch network and deposit franchise became central to the bank’s public messaging. These figures helped position DFCU as a bigger player in Uganda’s banking sector, capable of attracting more deposits, loans and digital services.
That narrative has shifted. What once served as proof of commercial success is now relevant to questions of what DFCU actually acquired, its true economic value, and whether representations about the scale of the business were accurate. Claimants argue that Crane Bank was not insolvent in the manner alleged and that the transfer process was unlawful. DFCU rejects the claims and is mounting a robust defence.
The financial cost is already visible. In a profit warning issued through the Uganda Securities Exchange on 30 July 2026, DFCU indicated that unaudited results for the six months to 30 June are expected to show a loss compared with the same period the previous year. The bank cited substantial legal expenses from the London proceedings as the main reason. It stressed that the projected loss does not reflect weakness in core banking operations, yet the irony is clear: the institution that grew larger by absorbing parts of Crane Bank is now absorbing heavy costs to defend that same transaction.
The litigation has a long procedural history. The English High Court initially dismissed the claim on jurisdictional grounds in 2022. The Court of Appeal revived it in July 2023, clearing the way for a full trial. That trial is scheduled to open in London in October 2026 and is expected to last about three months. Judges will examine the circumstances of the takeover, the transfer of assets and liabilities, and the alleged losses suffered by former shareholders.
Customer numbers carry particular weight in banking. They signal scale, market penetration and future revenue potential. Figures once used to reassure shareholders and attract clients can, in a courtroom, become evidence in assessing commercial benefit and potential damages. Any discrepancies in how those numbers were presented at different stages could attract further attention.
The dispute has moved far beyond a historical argument over a bank that exited Uganda’s financial landscape in 2016. It is now generating measurable costs for DFCU while forcing a re-examination of the growth story the bank once told. Whether those customer figures ultimately support the value of the acquisition or highlight what was at stake remains a question for the English High Court.
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