Controversial aviation entrepreneur Captain Eric Agolla Lugalia, linked to Air Afrik Aviation Ltd, has once again found himself at the center of a financial and legal storm following a KSh 722 million dispute involving Stanbic Bank, Absa Bank, and the Central Bank of Kenya (CBK).
Lugalia, who has faced multiple accusations of financial misconduct in recent years, reportedly held a press conference to defend himself against what he described as “institutional victimization” by top banking executives. The move, however, has been viewed by observers as a public relations stunt aimed at influencing ongoing court proceedings.
Sources familiar with the matter revealed that the captain’s statements came shortly after Stanbic Bank executives filed a plea seeking to stop police investigations initiated by Lugalia and his associates.
The Sh722 Million Dispute
At the heart of the controversy is a complex financial disagreement between Air Afrik Aviation Ltd and Stanbic Bank, which reportedly dates back several years. Investigations by the Directorate of Criminal Investigations (DCI) have been ongoing, with both sides trading accusations of fraud and breach of contract.
While the DCI’s initial findings appeared to favor the bank, Lugalia filed a counter-complaint, alleging that the bank owes his company KSh 722 million. He has since petitioned the court to compel further investigations into the actions of Stanbic executives, whom he claims orchestrated an internal cover-up to discredit him.
“We have been wronged. My company’s rights have been violated by institutions that should protect fairness in commerce,” Lugalia told journalists during his recent press briefing, citing alleged constitutional violations in the handling of the case.
Court Battle Intensifies
The dispute escalated after Stanbic Bank CEO Joshua Oigara challenged summons issued by the DCI, arguing that the case had already been reviewed and cleared by financial regulators, including the CBK.
Oigara maintains that reopening investigations into the matter would amount to double jeopardy and an abuse of process, since no criminal wrongdoing was established in prior reviews.
However, Lugalia insists that critical evidence was ignored in the earlier stages of the probe and that certain bank officials acted “in bad faith” to protect the institution’s image at the expense of justice.
Legal experts say the case could test the limits of corporate accountability, financial transparency, and the independence of investigative agencies in high-stakes commercial disputes.
Public and Institutional Reactions
The case has attracted widespread public interest due to Lugalia’s checkered record in the aviation industry and previous brushes with the law. While he continues to project himself as a victim of systemic corruption, critics argue that his pattern of legal confrontations points to questionable business practices.
Both the CBK and Absa Bank have also been mentioned in connection with the ongoing dispute, though neither institution has been formally accused of wrongdoing. Officials from both banks declined to comment, citing the sub judice rule that restricts public discussion of active court cases.
For now, the court is expected to determine whether Lugalia’s application to compel renewed investigations into Stanbic executives will proceed.
What’s Next
The case is scheduled for mention in the coming weeks, where the court will issue directions on whether to grant Lugalia’s request or uphold the bank’s plea to suspend the probe.
Legal analysts note that the outcome could influence future corporate investigations, particularly where executive accountability and bank-client disputes intersect with criminal justice processes.
As the saga unfolds, one thing remains clear — the battle between Captain Lugalia and Stanbic Bank continues to expose deep-seated tensions between Kenya’s financial elite and regulatory oversight bodies.