Kungu Muigai’s ordeal with KCB has stretched over decades, painting a troubling picture of how some banks in Kenya handle borrowers.
A retired military officer and cousin to former President Uhuru Kenyatta, Captain Muigai has been fighting the bank since 1989 over a loan his company, Benjoh Amalgamated Limited, took from KCB.
The loan was secured using land from Muiri Coffee Estates. Over the years, disputes escalated, and KCB eventually auctioned off a 443-acre coffee farm in Thika, worth billions. Muigai claims judges were bribed to rule in the bank’s favor, turning the legal system into a tool that favored KCB while leaving him and his family devastated.
Despite the judiciary’s insistence that the case was handled properly, including a loss at the Court of Appeal in 2024, Muigai’s experience highlights serious concerns about accountability when large banks are involved.His story is not an isolated case.
Many ordinary Kenyans face similar challenges when dealing with big institutions, particularly in the banking and tech sectors.
One young woman recently shared her experience after being mugged and losing her phone and personal items. She contacted Safaricom to block her line and protect her accounts, but the company said it could not block an active line. When she got a new SIM card the next day, she discovered that her savings in KCB-MPESA, and funds linked to KCB had disappeared.
Safaricom promised to investigate, but the emotional and financial damage had already been done. This incident shows how tech and banking giants, which report massive profits every year, often leave customers vulnerable and unsupported when crises occur.
KCB’s role in these troubles is particularly concerning because of its partnership with Safaricom through M-Shwari. The bank has been repeatedly criticized for prioritizing profit over proper customer care and financial integrity. Historical cases reinforce this perception.
In 2018, KCB was fined 149.5 million shillings by the Central Bank of Kenya for failing to report suspicious transactions linked to the National Youth Service corruption scandal. In 2020, it faced another $3.75 million fine for similar compliance failures.
The bank has also struggled with internal fraud, firing 22 employees in 2023 for schemes that targeted over 137 million shillings. Lawsuits have accused KCB of failing to uphold anti-money laundering duties, showing a recurring pattern of negligence and profit-driven decisions that harm ordinary citizens.
Stories like Muigai’s and the young woman’s demonstrate the human cost behind flashy financial reports and publicized profits. They expose a system where powerful banks often come out on top, while ordinary people are left fighting for justice. Wealthy institutions flaunting luxury and success may hide these injustices, but the real price is paid by vulnerable individuals.
It is increasingly clear that Kenyans need stronger protections and accountability measures to prevent institutions like KCB from repeatedly exploiting borrowers and customers. Only by holding these banks accountable can fairness and trust be restored for ordinary citizens.
Add Comment