Kenya Insights

Tag: Family Bank

  • Family Bank Accused Of Authoring Fake Report To Ouster Ex-CCO, Says They Ruined His Life

    Family Bank Accused Of Authoring Fake Report To Ouster Ex-CCO, Says They Ruined His Life

    Former Family Bank Chief Commercial Officer Kenneth Kaniu has asked the High Court to award him Sh717 million, claiming the lender ruined his career after allegedly authoring a damning report before kicking him out.

    In his case before Justice Lawrence Mugambi, Kaniu narrates that he was hired by the lender on December 24, 2021, following a rigorous exercise that involved a background check by Deloitte and Touché.

    Further, the appointment was subject to the Central Bank of Kenya (CBK) clearing him after another vetting and background check.

    According to his court papers filed by Echesa Bwire Advocates, CBK gave him a clean bill of health. Before Family Bank, Kaniu worked with Britam Asset Managers (BAM), a subsidiary of the Britam Insurance for six years as CEO.

    He states that BAM was paying him Sh2.6 gross monthly salary. After joining the lender, Kaniu says on May 24, 2022, he received a termination letter.

    The lender based its decision on an alleged background check report allegedly from CBK and Capital Markets Authority (CMA). Kaniu argues that Family Bank lied as there was no such report.

    To demonstrate his battle with the lender, Kaniu takes the court to the pulpit. He refers to himself as a meek person, just like David of the Bible.

    “I am a meek law-abiding citizen, who has no matching might to fight against the respondent (Family) a Goliath. Further, the impunity of the respondent is demonstrable; going to all heights including publishing a false report that the interested party issued a negative report when none was issued,” states Kaniu.

    The former CCO argues that Family ruined his livelihood and condemned him to unemployment. He claims the lender’s letter was circulated to the entire banking industry and the CMA.

    Kaniu narrates that he was once a golden boy of the banking industry, having worked in seven top-tier institutions, including the Commercial Bank of Africa (current NCBA). He says he has a commendable professional acumen and standing, such that he has been sitting on boards of at least 12 institutions.

    “The publication that the interested party had issued a negative report on fit and proper status concerning me was false and was at all times material known to the respondent (Family) to be false. I have suffered and continue to suffer odium and ostracisation from professional peers, a tag, and scar that I bear as a consequence of the deliberate and malicious publication of falsehood by the respondent,” Kaniu adds.

    He claims he has written to the bank, asking management to correct and recant its letter but his request has fallen on deaf ears. He states says at Britam, he was a permanent employee and hoped to work until 65 years old. He wants the court to award him 23 years’ worth of Britam salary as compensation.

    “This is the monetary loss, to career and livelihood that the petitioner has suffered, and which is an appropriate remedy in the circumstances,” argues Kaniu. The case will be mentioned on November 11.

  • Family Bank Accused Of Sh45M Public Funds Fraud

    Family Bank Accused Of Sh45M Public Funds Fraud

    In her report for the year ending June 2021, Auditor General Nancy Gathungu has revealed how taxpayers could’ve lost Sh45 million in a bitched deal between Information Communication Technology Authority (ICTA) and Family Bank.

    The money was part of unsecured loans that were lent to various startups that were executing various programmes under the digital villages programme.

    The loans popularly known as Pasha Loans were advanced by the Mwai Kibaki government to enhance the growth of ICT, tapping into the National Optic Fibre Infrastructure (NOFBI).

    In the contract between ICTA and Family Bank, the latter was to assess the loan recipients, disburse the funds and follow up on recovery.

    But out of the Sh128 million that was lent, the bank has remitted Sh82 million, leaving a balance of Sh45 million.

    The Auditor General in her report cast doubt the monies would be recovered.

    MPs at the Public Investments Committee on Commercial Affairs and Energy have begun a probe into the matter following the query.

    Pokot South MP David Pkosing Who’s the committee’s head accuses Family bank of fraud, “

    “Nobody can fail to explain the loss of Sh45 million just like that. The bank is a suspected of sinking Sh45 million. ICTA has said it was the responsibility of the bank,” Pkosing said.

    This was after Family Bank CEO Rebecca Mbithi while appearing before MPs on Thursday, said they have been unable to recover the money.

    “The money is with the people….the people who were lent by the bank,” she said.

    Mbithi further revealed that the bank has since closed the account and the same was acknowledged by ICTA.

    The bank argued that the contract had a clause which provided that ICTA could terminate the contract by giving the bank 30 to 60 days’ notice.

    On termination, ICTA was to pay any advances still outstanding. The funds issued to start-ups were not secured. The bank was to vet applicants for approval by ICTA.

    MPs have given the bank up to July 20 to file a proper response to the queries after Mbithi failed to respond to questions about how the bank won the tender.

    “Everything happened after the agreement. They have no evidence they defended themselves in the contract bidding in the first place,” Pkosing said.

    The MP maintained that “The bank is a suspect of sinking Sh45m of taxpayers’ money. It can only get out of that by explaining and showing everything was done above board,”

    MPs told the bank managers to work their ways to clear the query – or simply pay back the cash.

    “You must return this money. You cannot get away with it just like that and take it casually as we see,” Rangwe MP Lillian Gogo said.

    “It is the bank that interacted with the beneficiaries and knows where they are. What were they looking at since the loans were unsecured?” Ganze MP Tungule Charo asked.

    Wajir West MP Farah Yusuf Mohamed asked, “Before entering an agreement with ICTA, was there an advert? Why did ICTA terminate the contract?”

    “They say they were to vet applicants and recover loans…vetting they might have done but still failed and now Sh45 million taxpayers money is missing,” he added.

    MPs further observed that the “contract has serious gaps.”

  • Man Shot And Robbed Of Sh1.1M Moments After Withdrawing Cash From Family bank

    Man Shot And Robbed Of Sh1.1M Moments After Withdrawing Cash From Family bank

    A worrying trend in the last couple of weeks in the country’s capital Nairobi now has police, bank operators and their customers in constant worry following at least four incidents of customers being robbed of their money shortly after conducting various transactions.

    The latest incident saw a man sustain gunshot injuries after being shot at by gunmen aboard a motorcycle.

    According to preliminary reports, the man had just withdrawn Sh1.1 million from Family Bank, Donholm branch and while on the road, he was later ambushed at the Cabanas bus termius when the incident occurred.

    “We want to know how they knew he went for the money. The gang is on the run but we will get them,” said Embakasi Sub-County Police Commander John Nyamu.

    The man who was shot on the groin has been admitted at the Mater hospital.

    “From the bank, the victim boarded a matatu to Taj Mall where he alighted and took a boda boda to Cabanas to do some transaction near Cabanas stage along Mombasa road,” he further said.

    The victim is said to have initially resisted attempts by the gunmen to rob him of his money but his efforts proved futile.

    Detectives have now launched a manhunt for the gunmen as well as a pursuit for the bodaboda operator who dropped him off at Cabanas stage.

    Kenyans have now been encouraged to be extra vigilant while withdrawing huge amounts of money from banks and preferable seek security if need be.

    Other Daylight Robbery Incidents

    Just last week,police commenced a search for a gang of three men who robbed a man Sh414,000 that he had withdrawn from a bank in Utawala area in Nairobi county.

    The victim who is an administrator of a computer school in Mihango area had withdrawn the money from a bank and took an Uber back to the school when a car that had been trailing him blocked their way and hijacked them at about 2pm.

    The thugs took control of the car and drove towards Karagita area near Nairobi River where they dumped both the driver and the victim before escaping with the money.

    The matter was reported to the area police.

    In a similar failed incident, an accountant working at a local academy in Karen escaped being robbed Sh100,000 he had withdrawn from a bank in Galleria mall.

    The accountant told police people who had tried to block his way along Bogani Road claimed to be police officers but he drove past their blockade avoiding the robbery.

    Police are investigating both incidents, with preliminary investigations revealing that it could have been an inside job.