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KCB Bank
  • From the Employment and Labour Relations Court to the High Court of Kenya, KCB Bank’s name is appearing with notable frequency in 2026 rulings and filings.
  • Individually, each case may appear routine for a bank of KCB’s size. But collectively, they point to a broader narrative: persistent legal friction cutting across multiple areas of the institution.
  • Unlike explosive fraud scandals, KCB’s situation in 2026 is unfolding as a “slow-burn controversy”, a steady accumulation of legal battles that, over time, could prove just as damaging.

KCB Bank Kenya is facing renewed scrutiny, not from regulators or auditors, but from the courts, where a steady stream of cases in 2026 is raising uncomfortable questions about the bank’s internal operations, labour practices, and lending decisions.

Even as the lender posts strong financial results, court records reviewed from the Kenya Law database reveal a pattern that critics say cannot be ignored: KCB is increasingly entangled in multi-front litigation, ranging from employee disputes to high-stakes commercial battles.

KCB’s Trail of Cases Across Kenya’s Courts

From the Employment and Labour Relations Court to the High Court of Kenya, KCB’s name is appearing with notable frequency in 2026 rulings and filings.

Among the standout cases:

  • Mwaluma vs KCB Bank Kenya Plc (2026)
    A labour dispute in which the claimant challenges the circumstances surrounding their exit from the bank, alleging irregularities tied to restructuring. The case underscores ongoing tensions between KCB and sections of its workforce.
  • KCB Bank Kenya vs Gillys Security & Investigations Ltd
    A high-value commercial dispute centered on a KSh 84 million loan facility, with questions raised over documentation and the manner in which the loan was issued. The case has drawn attention to lending practices and transparency concerns.
  • Ndiritu vs KCB Bank Kenya (2026)
    A financial dispute before the High Court tied to earlier banking transactions, highlighting how past deals are resurfacing as present-day legal risks.
  • Kitise vs KCB Bank Kenya Limited (2026)
    An appeal case illustrating how disputes involving the bank can stretch across years, evolving into prolonged legal battles with significant implications.
  • In re KCB Bank Kenya Limited (2026)
    A procedural application that, while technical in nature, reinforces the perception of constant legal activity involving the bank.

Not Isolated Incidents, But a Pattern?

Individually, each case may appear routine for a bank of KCB’s size. But collectively, they point to a broader narrative: persistent legal friction cutting across multiple areas of the institution.

Legal observers argue that the issue is no longer about isolated disputes, but about the frequency and diversity of litigation.

“When you see employment disputes, loan-related cases, and appeals all happening concurrently, it suggests systemic pressure points within the institution,” a Nairobi-based legal analyst noted.

Labour Disputes Signal Internal Strain

Cases like Mwaluma vs KCB highlight a recurring theme—employee grievances spilling into courtrooms.

Many of these disputes revolve around:

  • Allegations of unfair termination
  • Questions over disciplinary processes
  • Claims linked to organizational restructuring

Insiders say this could be fallout from the bank’s tightened compliance and anti-fraud measures, which have led to dismissals in recent years—moves that may be triggering legal pushback from affected staff.

Lending Practices Under the Microscope

On the commercial front, the Gillys Security case stands out as a potential flashpoint.

At its core are allegations touching on:

  • Loan documentation integrity
  • Borrower consent and obligations
  • Internal approval processes

While the matter remains before the courts, it raises broader concerns about how lending decisions are structured and enforced, a sensitive issue for any major financial institution.

Old Deals, Lingering Consequences

The Ndiritu and Kitise cases tell another story: the long tail of financial decisions.

These disputes, rooted in past transactions, are only now being resolved—or contested—years later. The result is a growing docket of cases that:

  • Tie up legal resources
  • Prolong uncertainty
  • Keep the bank in continuous litigation cycles

Profitability vs. Perception

Despite the courtroom activity, KCB Group remains financially strong, reporting solid profits and maintaining its position as a regional banking powerhouse.

But analysts warn that financial performance does not cancel out reputational risk.

“You can be profitable and still have governance concerns. Courts reflect real disputes, and those disputes matter to investors and customers alike,” another expert observed.

A Slow-Burn Controversy

Unlike explosive fraud scandals, KCB’s situation in 2026 is unfolding as a “slow-burn controversy”, a steady accumulation of legal battles that, over time, could prove just as damaging.

Persistent litigation can:

  • Erode employee trust
  • Raise investor concerns
  • Invite regulatory scrutiny

Silence or Strategy?

So far, KCB has largely allowed these matters to play out in court, maintaining a measured public stance.

Whether this reflects confidence in its legal position or a deliberate effort to avoid amplifying controversy remains unclear.

The Question Facing KCB

As more cases surface and existing ones progress, a critical question is emerging:

Are these courtroom battles simply the cost of doing business at scale or signs of deeper cracks within one of Kenya’s most powerful banks?

For now, the answers lie not in press releases but in the courtrooms where KCB Bank Kenya continues to defend its record.

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  • Shareholders to get KShs.3 per share in final Dividend (Total Kshs.7 per share) as Assets Close at KShs.2.15 Trillion.

KCB Group PLC posted KShs. 68.4 Billion in profit after tax for the full year ending December 2025, up 11% on an expanded loan book that delivered higher income across key business lines coupled with sustained cost management across the Group.

On the back of the strong performance, the Board has proposed a final dividend payout of KShs. 3 per share, subject to shareholder approval. This is in addition to an interim payout of KShs. 4 per share which was paid out in November 2025, bringing the total dividend
payout for the year to KShs. 7.0 per share, amounting to a total of KShs. 22 billion for the year 2025.

During the period under review, the Group maintained a strong balance sheet with Total Assets growing by 9.3% to KShs. 2.15 trillion despite divesting in National Bank of Kenya, demonstrating the Group’s resilience and the success of its diversification strategy and innovative financial solutions.

Customer loans grew by 15% to close at KShs. 1.59 trillion, this growth was utilized to fund interest earning assets which closed at 1.84 trillion
an year-on-year increase of 13.8%.

Total revenues grew steadily to KShs. 214 billion from KShs.204 billion a similar period last year. This was driven by higher net interest income as the Group continued to deepen its support for households, businesses and the public sector. Non-Funded Income
delivered 31% of the total revenues, on the back of investments in digital banking.

Group CEO Commentary Speaking during the announcement of the financial results on Wednesday, KCB Group CEO, Paul Russo, said: “Our 2025 performance reflects the strength of the KCB franchise,
the resilience of our regional footprint, and the continued trust that customers place in us.
Despite a challenging operating environment, we delivered solid growth driven by disciplined execution, continued investment in digital innovation, and our unwavering commitment to supporting sector-focused lending that catalyzes economic transformation
across the region. We remained focused on sustainable growth, supporting customers and delivering long-term value for shareholders.”

The Group continued to benefit from its regional diversification strategy. Subsidiaries excluding KCB Bank Kenya contributed 30.7% in profit before tax (PBT) and 30.5% of the Group balance sheet. The performance reflects the success of the Group’s multi-market growth model and its ability to leverage opportunities across the East African region and
beyond.

The three non-banking subsidiaries delivered strong PBT performance — KCB Bancassurance Intermediary (KShs.1.14 billion – 29% growth), KCB Investment Bank (KShs. 348 million – 31% growth) and KCB Asset Management (KShs. 160 million – 54% growth).

The Group’s focus on cost management saw the cost-to-income ratio dropping to 42.5% from 45.4% the previous year. Overall, operating expenses declined by 2.5% YoY.

Balance Sheet Growth

On the balance sheet side, the stock of gross loans and advances rose 16.2% to KShs.1.25 trillion, driven by new to bank growth across key sectors of the economy.

The Group also maintained a stable deposit franchise across all markets— with the deposit book closing at KShs. 1.59 trillion, up 15%.

Looking at asset quality and coverage, the Non Performing Loans (NPL) ratio improved to close at 16.9% down from 19.2% driven by a proactive rehabilitation strategy, aggressive recovery and the hive out of National Bank of Kenya. The stock of gross NPL stood at KShs. 211.8 billion down from Kshs.225.7 billion the previous year.

The Group maintained a strong capital and liquidity position, with the Group’s core capital as a proportion of total risk-weighted assets closing at 18.4% against the statutory minimum of 10.5%. Total capital to total risk-weighted assets ratio was at 22.1% against a regulatory minimum of 14.5%. The Group’s liquidity ratio was 50.8% against a regulatory minimum
of 20%.

On shareholder returns, Return on Equity (ROAE) stood at 22.5% while Return on Assets (ROA) of 3.3%, signaling efficient deployment of equity to generate high returns.

Shareholder funds stood at KShs. 331 billion.

Outlook

“Looking ahead, we are optimistic about sustained business activity and economic growth prospects this year across the markets we operate in. We are closely watching the increased global uncertainties attributed to heightened geopolitical tensions and higher tariffs.

The Board remains committed to providing strong governance and strategic oversight to ensure that KCB continues to deliver long-term value while supporting economic transformation across East Africa,” said KCB Group Chairman Dr. Joseph Kinyua.

Key Corporate Developments

KCB received several local, regional and global accolades, cementing its position as a trailblazer in the continent’s financial sector, driven by its commitment to inclusive banking, cross-border innovation, and purpose-led leadership. Among them is Top Bank in Africa (The Banker).

The Group continued to support various initiatives through targeted sponsorships including
the and numerous contributions as part of corporate social investments to empower communities in markets where we operate. We remain true to our Environmental, Social and Governance (ESG) commitments to safeguard our People and the Planet even as we pursue Profits.

Last month, KCB Bank Kenya set aside KShs. 227 million for the 2026 World Rally Championship (WRC) Safari Rally Kenya which runs this week in Nakuru, marking the sixth consecutive year of sponsorship since the iconic rally made its historic return to Kenya.

In December, The African Development Bank Group (AfDB) and KCB Bank Kenya Limited have signed a $150 million financing package to support green finance and accelerate climate-smart investments to enhance KCB’s trade finance capacity within the growing small business and corporate banking sector in Kenya.

In November, KCB Group Plc entered into an agreement to invest in Pesapal Limited (Pesapal), in a transaction that is expected to significantly accelerate commerce, create pathways to prosperity, and drive digital and inclusive growth for businesses across Africa.

The transaction is subject to conditions that are customary to transactions of this nature,
including receipt of regulatory approvals.

In January this year, KCB Group received approval from Competition Authority of Kenya
(CAK) to acquire 75 per cent stake in the payments technology firm,

The Group continued to deepen its digital footprint, with a new unified mobile app that is
focused on payments, saving, and investments among other capabilities.

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Sometime in December 2021, a woman walked into KCB Changamwe Branch to get a loan. The lady who had been a client of the bank, sought the services of one of the senior loans officers named Hannington Muthoka.

While in the process of applying for the loan, Hannington in scheme of things developed a relationship with the woman and they started being very close. Closer than close. So Hannington started abusing the relationship because he had all the client private data and with the relationship, he would access the client’s account whenever he wishes.

He started, not only taking money from the lady’s account without her permission, but also borrowing more using her credentials. In fact, Hannington managed to borrow money and bought a car using the lady’s credentials. The car is one among the Uber vehicles he operates in Mombasa.

The lady started getting into the financial red as the man even depleted more than Ksh 600,000 from her account. The lady complained and asked friends to advice the man to refund her money but the man refused and decided to plot an elimination.

So the man planned how to eliminate the woman as he realised that he was going to lose his job at KCB. So he bought a knife and planned a murder while pretending that he wanted mediation between them. So when the woman insisted on getting her money back, he decided to stab her several times hoping to choke life out of her. But members of the public who witnessed the commotion teamed up and gave chase making him leave the knife at the back of the lady.

After the attempted murder, the woman was rushed to Aga Khan hospital where she is in the ICU. The case which happened within the jurisdiction of Port Reitz Police Station and was reported there, was mysterious called by OCS Changamwe who is a bossom friend and partner-in-crime of Hannington Muthoka. Hannington was booked at Changamwe but didn’t look as suspect but a man who could do anything within the station.

The man was mysteriously released this morning by OCS Changamwe on police bond. It has also been revealed that the man was charged with general assault and not attempted murder.

While the woman fights for her life, the man is free and both the OCS CHangamwe and KCB Changamwe Branch Manager are all trying to ensure that justice is denied.

Remember that Hannington Muthoka stopped stabbing the woman repeatedly when the knife broke. He was out to kill the lady. Police say there are NO WITNESSES. There are many witnesses.

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In May 2021, the Uasin Gishu County Government partnered with Tampere University, Finland, in a programme that would see students from the devolved unit airlifted to live, study and work in the foreign country.

It was a dream come true for many, given the yearning of young Kenyans to join universities overseas.

Many, especially those from humble backgrounds, had enthusiastically applied for the opportunity, hoping it would save them from the tedious immigration processes that come with obtaining travel documents.

The first batch of learners left the country in September 2021, three months after the deal was signed – the 51 students were to pursue medicine and other science-related courses: 25 were going to pursue degree courses and 26 were to pursue diplomas.

The icing on the cake was that the successful applicants in the programme were guaranteed employment in Finland upon completion of their courses.

Because of this, many families took a chance, organising fundraisers to raise the fees to enable their sons and daughters to pursue the dream that would alleviate them from their challenging backgrounds. 

The county government went ahead to open an account – the Uasin Gishu County Government Overseas Trust Fund – at KCB Bank to collect the tuition fees the students were required to pay.

Under the deal, the devolved unit was to act as a guarantor for the students in their respective universities in payment of their tuition fees.

The county government agreed to collect money from the parents and remit it as a lump sum, thus there was no agreement between parents and the universities to pay the tuition fees directly to the institution.

On September 14, 2021, former Governor Jackson Mandago (now the county senator) flagged off the first batch of 51 students to travel to Finland to study in a partnership that sought to produce qualified health personnel for the international labour market, while at the same time addressing youth unemployment.

Some of the parents are demanding a refund of their money terming the entire arrangement a scam.

The complaints prompted the formation of an ad hoc committee to establish the legal framework on which the Finland scholarship programme was anchored. The team is looking into whether there is a memorandum of understanding between the county government and the targeted Finland universities. 
The committee was informed that 202 students are in Finland under the programme, which was to be implemented at Tampere, Jyvaskala and LUT universities, among others. According to the county education department, Max-global acted as the agent in the recruitment of students and the county stood in for the bank statements for the students.

Committee Findings

The ad-hoc committee has recommended disciplinary action against officials implicated in the scam. It has further recommended a refund of money paid as fees by parents under the much-hyped Uasin Gishu students airlift programme.

The committee found out that senior County officials colluded with Kenya Commercial Bank (KCB) and agents to fleece parents of millions in a Finnish scholarship scandal that saw learners airlifted and dumped in Europe.

Following its investigation, the team, whose report was endorsed by the county assembly for consideration, now wants the Ethics and Anti-Corruption Commission (EACC), the Directorate of Criminal Investigations (DCI), and other relevant agencies to move in and investigate the implicated senior county officials for forgery, abuse of office and integrity.

The committee led by Mr Gilbert Chepkonga has endorsed the recovery of the stolen money to support some of the students who are said to be stranded in Finnish universities.
According to the report, the Uasin Gishu County Government, under the stewardship of former Governor Jackson Mandago, now the Uasin Gishu Senator, opened the ‘Uasin Gishu County Government Overseas Trust Fund’ account in Kenya Commercial Bank (KCB) for purposes of receiving tuition fees for the students benefiting from the scholarship programme.
Protesting parents led by Mr Reuben Chepses Koech told the committee those who applied for the opportunity were required to pay an interview fee of Sh6,500, but were not issued with receipts for the payment.

The students were then required to pay 8,650 euros — equivalent to Sh1.19 million in school fees, Sh80,000 accommodation fee for three months, Sh30,000 insurance fee, Sh49,000 for a visa, Sh5,000 for Covid test and 100,000 for their flights.

The eligible candidates were issued with acceptance letters from their respective universities, while the County Government of Uasin Gishu issued them with a certificate of full scholarship.

On September 14, 2021, Mr Mandago flagged off the first batch of 51 students to travel to Tampere to study in various fields, in the partnership that sought to produce qualified health personnel for the international labour market, while at the same time addressing youth unemployment.

However, according to the report by the committee, the implementation of the programme was a highly guarded secret that even then-county head of Education Joseph Kurgat was kept in the dark, despite it being under his docket.
Mr Kurgat told the committee that the programme was not discussed at the county Cabinet level and no policy framework was tabled for Cabinet approval.

Case with KCB

While accusing KCB officials of being part of the bigger plot, the committee is demanding a forensic financial audit of the Uasin Gishu Education Overseas Trust Account at the KCB Eldoret East branch, and that county employees mentioned as beneficiaries of the transactions from the account be suspended pending investigations.

According to bank statements tabled before the committee, several individuals, including senior county officials are among the irregular beneficiaries of funds meant for the students.

“The County Executive to engage the services of an independent and reputable external forensic auditor to audit the account and report back to the county assembly within 30 days.

The forensic auditor’s term of reference shall be to analyse the financial data to look for evidence of the crime,” said the report.

The committee further wants KCB to investigate and take necessary action against its staff for professional negligence, by allowing the Uasin Gishu Overseas Education Trust Account to be opened without conducting due diligence.

The report reveals that some trustees heavily benefited financially from withdrawals from the account, although they were not entitled to a monetary benefit.

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