Kenya Case Law

Mburu v Cooperative Bank of Kenya Limited & another

Mburu v Cooperative Bank of Kenya Limited & another [2024] KEHC 10303 (KLR)

Court

High Court

Case number

Civil Suit E097 of 2021

Judge

F Wangari

The court found that the 1st Defendant negligently and without lawful justification listed the Plaintiff as a defaulter with the 2nd Defendant, despite the account in question having been closed and no outstanding liability established. The 1st Defendant failed to notify the Plaintiff prior to the negative listing, in breach of the Credit Reference Bureau Regulations, 2013, and did not rectify the error even after being informed. This conduct amounted to negligence and breach of statutory duty, causing the Plaintiff financial loss and reputational harm. The court further held that the publica…

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• Credit Reference Bureaus
• Negligent Listing
• Defamation By Publication
• Loss Of Earnings
• Bank Customer Duties
• Statutory Compliance

United Airlines Limited v Kenya Commercial Bank Limited

United Airlines Limited v Kenya Commercial Bank Limited [2020] KEHC 10269 (KLR)

Court

High Court

Case number

Civil Case 4077 of 1994

Judge

F Tuiyott

The High Court found the bank breached its duty in remitting funds, but United Airlines proved no recoverable loss. Judgment went for the bank on its counterclaim.

• Bank Customer Duties
• Loan Disbursement
• Negligence In Banking
• Foreign Currency Remittance
• Guarantees And Security
• Damages For Breach

Stanley Njogu Karari t/a Monaco Engineering Limited v Standard Chartered Bank Kenya Limited

Stanley Njogu Karari t/a Monaco Engineering Limited v Standard Chartered Bank Kenya Limited [2020] KEHC 9976 (KLR)

Court

High Court

Case number

Civil Case 3 of 2016

Judge

F Tuiyott

The court found that while Standard Chartered Bank owed Monaco Engineering Limited a duty of care as a banker, most of the plaintiff's claims were unproven. The dishonour of cheques was found to have occurred on the Bank's assurance that the account was operational, but Monaco failed to prove actual loss or damages from this. The claim for wrongful charges was addressed, with the court noting that any overcharges or erroneous debits (such as the arrangement fee and overcharged interest) were refunded or corrected by the Bank. The expert report on interest overcharge was largely disregarded wh…

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• Bank Customer Duties
• Overcharging Of Interest
• Credit Reference Bureau Reporting
• Breach Of Contract
• Damages For Wrongful Listing

Paramount Bank Limited v Hassan Naqvi Syed Ul Qamar

Paramount Bank Limited v Hassan Naqvi Syed Ul Qamar [2020] KEHC 2897 (KLR)

Court

High Court

Case number

Civil Appeal 160 of 2017

Judge

DO Chepkwony

The court found that Regulation 35 of the Credit Reference Bureau Regulations, 2013, does not provide a remedy for reputational injury or damages for defamation, but only an administrative avenue for correcting credit information. Therefore, the suit was not premature. The Appellant, having maliciously forwarded inaccurate negative credit information to the Credit Reference Bureau after confirming the Respondent had cleared his loans, breached its duty under Regulation 50 to provide accurate information and to correct errors upon notification. The inaccurate report led to the Respondent being…

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• Defamation By Publication
• Malicious Falsehood
• Credit Reference Bureau Reporting
• Bank Customer Duties

Supinder Singh Sagoo v Kenya Commercial Bank

Supinder Singh Sagoo v Kenya Commercial Bank [2020] KEHC 7658 (KLR)

Court

High Court

Case number

Civil Case 31 of 2018

Judge

OA Sewe

The High Court held that the bank failed to act with due diligence in realizing the customer’s securities, awarded nominal damages, and granted an injunction.

• Overdraft Facility
• Security Realization
• Breach Of Contract
• Bank Customer Duties
• Statutory Power Of Sale
• Overdraft-facility

Kenya Commercial Bank Ltd v John Khaindi & another

Kenya Commercial Bank Ltd v John Khaindi & another [2019] KEHC 1053 (KLR)

Court

High Court

Case number

Civil Appeal 3 of 2016

Judge

SN Riechi

The appellate court found that the appellant bank owed the respondent a duty of care and fiduciary duty in managing the respondent's account. The evidence established that unauthorized withdrawals totaling Kshs.105,000 were made from the respondent's account without her consent, and the bank failed to demonstrate that it took reasonable care or provided evidence (such as CCTV footage) to show otherwise. The court held the bank solely liable for the loss and ordered a refund of the withdrawn amount. However, the court found that the general damages of Kshs.350,000 awarded by the trial court we…

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• Bank Customer Duties
• Fiduciary Duty Breach
• Negligence By Banks
• Damages Assessment
• Atm Fraud Liability

Edinah Matundura Ratemo v Kenya Commercial Bank Limited

Edinah Matundura Ratemo v Kenya Commercial Bank Limited [2019] KEHC 916 (KLR)

Court

High Court

Case number

Civil Appeal 32 of 2019

Judge

REA Ougo

The High Court dismissed an appeal over an alleged unauthorized mobile banking transfer, finding the appellant failed to prove negligence or breach by the bank.

• Bank Customer Duties
• Negligence In Banking
• Fiduciary Duty
• Unauthorized Transactions
• Bank-negligence
• Unauthorized-transactions

Kenya Programmes for Sustainable Development v Cfc Stanbic Bank Limited

Kenya Programmes for Sustainable Development v Cfc Stanbic Bank Limited [2017] KEHC 9214 (KLR)

Court

High Court

Case number

Civil Suit 682 of 2009

The court found that while the bank was not obliged to act on stop payment instructions that did not comply with the mandate (i.e., not signed by all three authorized signatories), the bank was nevertheless put on notice by the unusual circumstances—specifically, the chairman, who was also a signatory to the cheque, issuing instructions to stop payment. This inconsistency should have prompted the bank to make further inquiries before honouring the cheque. The bank's failure to do so amounted to a breach of its duty of care to the customer. However, the plaintiff was also found to have contrib…

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• Bank Customer Duties
• Negligence
• Mandate Of Signatories
• Stop Payment Instructions

NATIONAL BANK OF KENYA LIMITED V BETH NGONYO NGENGI & ANOTHER

NATIONAL BANK OF KENYA LIMITED V BETH NGONYO NGENGI & ANOTHER [2012] KEHC 1628 (KLR)

Court

High Court

Case number

Civil Suit 1224 of 2000

Judges

AI Tullu, CC Kipkorir

The High Court held the bank could recover only the admitted balance from the date the card was reported lost, with court interest, and disallowed the rest.

• Credit Card Liability
• Contractual Interest
• Unauthorized Transactions
• Bank Customer Duties
• Credit-card-liability
• Contractual-interest

HABO GROUP OF COMPANIES LTD V MERCY VOSENA MUSERA & ANOTHER

HABO GROUP OF COMPANIES LTD V MERCY VOSENA MUSERA & ANOTHER [2012] KEHC 2981 (KLR)

Court

High Court

Case number

Civil Suit 149 of 2011

The High Court dismissed an application to strike out a bank-related suit, holding that issues of negligence, collusion, and statement objections should be tried on evidence.

• Striking Out Pleadings
• Verifying Affidavit Requirements
• Bank Customer Duties
• Negligence In Banking
• Corporate Litigation Procedure
• Fraud And Collusion