Forgotten bank earns millions in compensation

The Supreme Court of Appeal in Blantyre has ordered the Reserve Bank of Malawi (RBM) to pay Finance Bank of Malawi (FBM) K300 billion, down from the K1.1 trillion the defunct bank was demanding.

According to a ruling by Supreme Court Registrar Ibrahim Hussein, K157.471 billion is for loss of business and profit, K138.124 billion is for malfeasance in public office, and K150 million is for breach of constitutional rights.

FBM was demanding K1.1 trillion following a February 3, 2026 judgment, which found that RBM’s revocation of the bank’s licence in 2005 was unconstitutional.The Supreme Court then ordered an assessment of damages.

Attorney General Frank Mbeta has said he will study the ruling before filing for a review.