Omtatah calls for CBK, DCI probe into Sh1.5 billion Absa misconduct claims

Sen. Andrew Omtatah has called for investigations by Kenya's Central Bank (CBK) and Directorate of Criminal Investigations (DCI) into allegations of misconduct at Absa Bank Kenya. The claims stem from a dispute between Absa and New Mega Africa Limited, a Mombasa-based road haulage firm, in a 2022 legal case (Case No. E068). Omtatah asked the CBK to investigate potential regulatory breaches and the DCI to probe allegations of criminal offenses.

He says the complaints raise questions about bank officials' conduct and adherence to banking laws, consumer protection rules, and data protection regulations. New Mega Africa started its relationship with Absa in March 2020, receiving various banking facilities such as term loans, temporary excess facilities, and bank guarantees.

The company alleges that delays in processing its financing negatively impacted its operations, leading to the cancellation of contracts with Mombasa Cement Limited and Tororo Cement Limited, and the loss of a fleet of over 40 trucks. Absa is accused of demanding cash and M-Pesa payments for loan drawdowns and other services, with some payments reportedly made to Evelyn Essendi (wife of Absa official Wycliffe Makori) and others to Makori himself.

Omtatah wants the CBK to examine potential regulatory breaches and criminal offenses, as well as the alleged disclosure of New Mega Africa's confidential financial information to third parties. Absa has denied any wrongdoing, with the bank's internal investigation reportedly finding no misconduct by its staff.