Ndungu Nyoro has publicly cut ties with KCB Group after sharing the painful story of a businessman named Powel, whose life and company were destroyed following a failed bank transaction.
In a post on his Facebook page, Nyoro told the bank that after reading the story, he had lost faith in them as a client and described the situation as very sad.
The story, written by Powel himself, explains how his company, Powel Jea Enterprise Limited, collapsed after KCB bank failed to complete two international transfers.
In 2023, Powel travelled to India to find a supplier of t-shirt fabrics. He paid a deposit of 2 million Kenyan shillings for goods worth 5,920,000 shillings.
When the supplier finished production and asked for the balance, Powel sent 1 million shillings through Pesa Link.
He then went to KCB to negotiate a better exchange rate for the remaining amount.
At the time, his KCB account had 1,950,000 shillings, and the bank wired 1,920,000 shillings to the supplier through RTGS.
He also withdrew 900,000 shillings from his Sidian account and deposited it at the KCB Two Rivers branch, which was also sent to India.
Three days later, the supplier said he could not access the last two transactions. He asked Powel to get a TT letter from his bank confirming that he was the one sending the money for fabric.
Powel went to KCB Jogoo Road and met the assistant manager, Mr Kevin, who suggested that they recall the funds and resend them using the company account.
Powel signed the recall letter. As he was leaving, the branch manager, Eunice, stopped him and said the decision was wrong because recalling the money could cause big losses due to exchange rates. She told Kevin to cancel the recall.
Powel signed a second letter cancelling the recall, and he was told everything was fine.
The transactions then went silent. One week later, the supplier said his bank had been told that Powel’s bank had recalled the funds. Powel went back to KCB and was told the money was with a middle bank in the USA.
For two months, he visited the bank almost every day, but nothing happened. He hired a lawyer who wrote a demand letter, but the bank ignored it.
During this time, his loan of 550,000 shillings per month fell into arrears because his working capital was stuck.
One evening, Powel saw transactions on his account. The bank had reversed the 1.9 million shillings and used it to repay his loans in full.
The next morning, his supplier confirmed receiving the 900,000 shillings. His working capital was now split, and his business could not continue.
Powel went to court in August 2023. He says the bank kept skipping court dates until the court decided to adopt his file and set a judgment date for 28 August 2026.
When the bank realised it might lose, it filed an application to reopen the file. The court granted it, and the hearing is now set for 9 December 2026. Since then, Powel’s business has collapsed. His children no longer go to school.
He is living with debts from friends and microfinances, and people want to auction his household items. His cars are gone, and KCB auctioned his company premises at Jogoo Road over rent arrears. His 30 employees lost their jobs.
The supplier refused to release the goods, saying they were customized. Powel says he is struggling with his mental health and fears he might die in his sleep. He is asking the Central Bank to intervene.
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