Shareholders of dfcu Limited have expressed anger over rising legal costs linked to the bank’s defence in a lawsuit filed in London over the Crane Bank transaction.
The issue came up at dfcu’s annual general meeting, where shareholders questioned the increase in legal expenses reflected in the bank’s 2025 financial statements. Board Chairman Jimmy Mugerwa said the case, which is being handled in a foreign jurisdiction, has required the bank to engage experienced international legal counsel, pushing up costs. ”The suit was instituted in a foreign jurisdiction and the costs for this suit remain high,” Mugerwa told shareholders. He said the matter remains before court and could not be discussed in detail, but insisted that the bank remains confident in its position and will continue with its defence.
The lawsuit relates to dfcu’s 2017 acquisition of selected assets and liabilities of Crane Bank, a deal that has faced legal challenges for years. Mugerwa said the bank had maintained its position on the matter and would continue protecting the interests of shareholders. ”dfcu has always ascribed to ethical standards of global best practice and will continue to deliver value to its shareholders and best service to its customers,” he said.
Managing Director and Chief Executive Officer Charles Mudiwa said the matter was being handled through the appropriate channels and expressed confidence that it would eventually be resolved. ”We believe that issue is being managed and we continue to manage it,”
Mudiwa said. Despite the legal expenses, dfcu reported a profit after tax of Shs74.9 billion, up 4% from the previous year.
Chief Financial Officer Rebecca Birungi said the bank’s performance remained strong, supported by a 16% rise in operating income, increased lending and stronger customer deposits.
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