Powerful Crane Bank Ghost Still Haunts! Crisis Hits DFCU Bank As Legal Battles Pile Up Amidt Staff Revolt

By Frank Kamuntu

DFCU Bank continues to flaunt sky-high profits and multitrillion-shilling assets, presenting a picture of strength to investors and the public. But beneath the polished reports and flashy sponsorships lies a bank mired in crippling litigation, internal unrest, and a majority shareholder quietly plotting an exit.

The trouble dates back to the controversial 2017 acquisition of Crane Bank. Billed as a rescue, the deal has instead dragged DFCU into costly courtrooms in Kampala and London, draining resources even as management splurges on high-profile events and anniversary galas to project confidence.

Dutch investment vehicle Arise BV, which holds roughly 58 percent of DFCU, reportedly recalled veteran banker Charles Mudiwa from retirement in Zambia with a clear mandate: gloss over the cracks, polish the brand, and prepare the bank for sale. Under his leadership, DFCU announced a 151 percent jump in net profits to Shs 72 billion in 2024 and assets of Shs 4 trillion. Yet insiders dismiss these figures as cosmetic window dressing, masking structural fragility.

Meanwhile, employees are paying the price. Regional staff complain of being starved of operational funds, saddled with unrealistic targets, and threatened with layoffs while headquarters enjoys lavish perks. The pressure reached a boiling point when two senior staffers — including Chief Business Solutions and Marketing Officer Marrann Wanjiku — engaged in a shocking physical altercation. Colleagues whisper about “cramps” and exhaustion, symptoms of overwork and unrelenting stress.

In a damage-control memo after the brawl, Mudiwa urged employees to bring complaints directly to his office rather than resort to violence. But sources say the memo has done little to soothe tensions, particularly in upcountry branches where talk of industrial action simmers.

The unrest coincides with Arise BV’s pivot toward Equity Bank, where it already owns 12 percent. Unlike DFCU, Equity is free from multi-billion-shilling legal hangovers and is climbing steadily in market share. Industry insiders suggest DFCU is being “packaged” for sale once its books and brand are sufficiently polished.

For staff, the contradictions are stark: billions spent on concerts, Rotary pledges, and gala events while local branches struggle to meet basic operational needs. Memos urge calm after high-profile incidents, yet the underlying causes of discontent remain unaddressed.

With lawsuits still gnawing at its balance sheet, executives under mounting pressure, and its principal shareholder eyeing the exit, DFCU is no longer just a bank recovering from a troubled acquisition. It is an institution in the throes of a reputational and human-capital crisis — a glittering façade carefully curated to attract a buyer before the cracks underneath become impossible to ignore.