Nairobi, May 25 -- When Mauritius-based Afrasia Bank placed $7.5 million (Sh967.5 million) in Chase Bank Kenya in March 2016, the lender expected the money back within 31 days under a routine fixed deposit deal.

Instead, the cash disappeared into the turmoil of Chase Bank's collapse, triggering a nearly decade-long legal battle over whether the money was ever transferred to SBM Bank after the failed lender was taken over.

Court filings, arbitration proceedings and High Court findings now reveal a fight over missing liabilities, opaque bank transfers and the legal obligations surrounding one of Kenya's biggest bank rescues.

The dispute traces back to March 18, 2016, when Afrasia deposited $7.5 million with Chase Bank at an annual intere...