A transport company pursuing Sh1.5 billion in damages from Absa Bank Kenya over an alleged data breach has appointed an independent auditor to assess the financial losses it says resulted from the unlawful disclosure of its confidential banking information.
New Mega Africa, which is suing the lender, asked the court for additional time to file the auditor’s expert report, explaining that the auditor is currently on field assignments outside Kenya.
The case has also seen a change in witnesses after one of Absa’s intended witnesses, Sophie Omondi, withdrew from the proceedings, citing personal reasons. In a letter copied to the court and the parties, she said the case had taken a personal toll and that she wished to move on. She also confirmed her withdrawal from a separate but related case involving the same parties before a Nairobi court.
The latest developments came as former Absa Bank Coast Region Sector Head for Business Banking, Evans Murumba, testified that the bank disclosed New Mega Africa’s confidential financial information to third parties, an alleged breach that the company argues caused significant financial and reputational damage.
Mr Murumba told the court that New Mega Africa had been a financially healthy client whose credit facilities were gradually increased after the bank assessed its business as stable.
He said the company’s financial position deteriorated during the Covid-19 pandemic after its major customer, Tororo Cement, extended payment timelines, creating cash flow challenges. The transporter subsequently sought an extension of its temporary overdraft before later applying for a restructuring of its banking facilities.
According to Mr Murumba, the bank approved a temporary overdraft while the company searched for another financier that could assume its guarantee and provide an additional Sh5 million in financing to ease short-term cash flow pressures.
He testified that although he had recommended the restructuring request and assured the client it would be approved within seven days, the process stalled after responsibility for the account was transferred between relationship managers.
Mr Murumba further alleged that the delays coincided with the unauthorised disclosure of the company’s confidential banking information by then relationship manager Wycliffe Makori.
He told the court that after attending a meeting at the company’s offices with Mr Makori and incoming relationship manager Ms Omondi, the bank assured New Mega Africa that its restructuring request would be handled urgently.
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However, about an hour later, the company’s director, David Abai, informed him that he had received a phone call from Jared Makori, then a regional manager at the Kenya National Highways Authority (KeNHA).
According to Mr Murumba, Jared Makori told Mr Abai that Wycliffe Makori had disclosed the company’s financial difficulties, revealed that the bank was considering recalling its credit facilities and auctioning securities, and advised him against entering into business with the transporter. He allegedly urged other potential business partners to exercise similar caution.
Mr Murumba described the disclosure as a serious breach of customer confidentiality, the bank’s duty of care and data protection laws. He testified that when he confronted Wycliffe Makori about the allegations, the relationship manager admitted making the call.
In his witness statement, adopted as evidence, Mr Murumba said the conduct amounted to gross misconduct and appeared intended to create panic and damage the company’s reputation among its business partners, particularly when viewed alongside the relationship manager’s reluctance to hand over management of the account to his successor.
Absa Bank Kenya has denied all the allegations.
