A borrower has come forward with a troubling story that raises questions about Absa Bank Kenya’s handling of loans and repayment structures.
He explains that in 2019 he took a seven-year loan expected to end in April 2026, under a check-off arrangement where his employer would deduct payments directly from his salary and forward them to the bank.
To him, once the deductions left his payslip, the responsibility to remit rested fully on the employer and the bank, not on him.
Years later, after faithfully servicing the loan for more than seventy months, he decided to inquire about a top-up facility only to discover that the loan balance had barely reduced and that the repayment period had been extended until 2034.
The shock was compounded when he realized that despite the long period of regular deductions, his principal amount remained almost untouched.
The bank attributed this to delays in employer remittances and adjustments in the base lending rate, factors he says are completely outside his control.
According to what he was told, when the funds finally reached the bank, they were used to offset penalties, commissions, and accumulated interest, leaving his loan in a stagnant cycle.
He expressed his frustration directly, stating, “Good afternoon, sir. Thanks for the good work you are doing for the voiceless in the society. I have an issue I would like you to air to reach those who are also suffering silently like me. I took a seven-year loan in Absa Bank, formerly Barclays Bank. I was to clear the loan in April 2026. The loan was to be recovered through check-off. My employer entered into contract with the bank and was to deduct my pay and forward to the bank. My employer has dutifully deducted my salary from the first repayment month. I visited the bank yesterday to see if I can top up. To my shock, I found out that my loan clearance period has been extended from 2026 to 2034. The outstanding balance had not moved even an inch. This is a loan I have serviced for over 70 months, but the principal is almost the same. I asked why the loan had stagnated and I was taken round in circles. When I persisted to know, I was told that two factors contributed to the stagnation. An increase in the statutory base lending rate and failure by my employer to remit the cash on time.
They added that my employer remits the money after the agreed deadline, such that when the cash reaches the bank, it is used to clear commissions and penalties only. My question is, the bank entered into an agreement with my employer to deduct my pay and remit on time. Then why should I be punished for a breach which I was not party to?”
This borrower’s ordeal shines a spotlight on larger questions of accountability within Absa Bank, which in recent years has faced multiple legal and operational controversies.
The institution is still entangled in a Ksh 1.5 billion case filed by New Mega Africa Limited, accused of sharing confidential data with third parties and sabotaging operations.
It has also lost several employment disputes in court, with rulings highlighting unlawful terminations, unpaid bonuses, and failures to honor contractual salary agreements.
Whistleblower reports have revealed troubling claims of data theft, misuse of client information, and even the illicit sale of details collected through its Timiza platform.
Cases of unauthorized transactions, reckless account management, insider profiteering through undervalued asset acquisitions, and allegations of harassment within its branches have deepened mistrust.
These controversies have even attracted the attention of Absa South Africa and the Central Bank of Kenya, signaling the seriousness of the problems.
Yet for customers like this borrower, what stands out most is how easily they become the victims of systemic inefficiency and neglect.
Despite being under the watch of regulators such as CBK, CMA, and CAK, Absa continues to operate with little meaningful accountability.
Consumer groups like Cofek have also done little to address such grievances, leaving individuals exposed to financial injustice.
The situation now calls for urgent action, not only from the bank but also from regulatory institutions that are meant to safeguard the interests of borrowers.
They reveal a clear pattern of neglect where the ordinary customer ends up paying the heaviest price for failures they did not create. Unless accountability is enforced, Absa Bank Kenya risks deepening its reputation as a lender that cannot be trusted to act in the best interest of its clients.
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