Malawi government to appeal K300bn Finance Bank award
Attorney General Frank Mbeta calls the compensation to the defunct bank excessive and plans a Supreme Court review this week.
Malawi's government will challenge a K300 billion compensation award to the defunct Finance Bank Malawi (FBM), Attorney General Frank Mbeta said. Mbeta told an interview that he believes the award is excessive and will seek a review before a full bench of the Supreme Court of Appeal within this week.
The award, made on November 4, 2026, by Supreme Court assistant registrar Ibrahim Hussein, orders the Reserve Bank of Malawi (RBM) to pay FBM for revoking its banking licence in 2005. It splits into K157.5 billion for loss of business and profit, K138.12 billion for malfeasance in public office, and K150 million for breach of constitutional rights. The bank had first claimed K1.1 trillion.
The Supreme Court ruled on February 3, 2026, that RBM's revocation was unconstitutional and ordered damages assessed. The dispute began in May 2005, when Finance Bank challenged the licence revocation.
Why it mattersThe K300 billion payout is a cost to the public purse, which the government is now trying to reduce through an appeal.