The High Court in Nairobi has delivered a clear and damning judgment against Kenya Commercial Bank.
Two borrowers, Mua and Company Limited and Evans Mukunga Mua, walked away with nearly 3.7 million shillings after the court found that KCB overcharged them on a loan of just 640,000 shillings and then tried to force the sale of their properties even though the debt had already been paid.
The story begins years ago. The borrowers took small loans and overdrafts from KCB. They paid more than 3.3 million shillings between 1986 and 1995. Yet the bank kept claiming they still owed money.
Interest rates were raised without any proper agreement, climbing as high as 54 percent. Different loan facilities were mixed together without the customers’ knowledge.
When the borrowers complained and brought in an independent auditor, the numbers showed they had already paid far more than they borrowed. KCB itself later admitted it had overcharged them and refunded half a million shillings. Still, the bank refused to clear the remaining records and continued to threaten auction.
Justice W.A. Okwany looked at the evidence and sided fully with the borrowers. The court ordered KCB to pay back 695,160 shillings for the proven overpayment and added another 3 million shillings in damages because the bank’s threats of auction damaged the borrowers’ reputation.
The bank’s counterclaim was thrown out completely. The charges on the borrowers’ land must now be lifted. In plain terms, the court said the customers had finished paying long ago and the bank had no right to keep holding their property or demanding more money.
This case is not just about one old loan. It shows a pattern of how KCB has treated ordinary customers. The bank raises interest rates on its own. It fails to keep clear records of payments. It ignores complaints until a court forces it to answer.
When customers finally prove they overpaid, the bank still fights them instead of simply correcting the account. The result is years of stress, fear of losing homes and land, and the need to spend more money on lawyers and auditors just to get what is already theirs.
The same bank that overcharges customers and threatens their property also has a long record of ignoring internal problems. Staff complaints about bullying and unfair treatment are brushed aside. Senior managers stay in their positions even when serious questions are raised about their conduct.
Customers and employees both learn the same hard lesson: the bank will protect itself first.
Kenyans who bank with KCB should take careful note. Keep every receipt. Demand written statements that show exactly how every shilling is applied. Do not assume the bank’s figures are correct.
