Resignations, Allegations and Court Battles: The Client Scandals Shaking Absa Bank

Absa Bank Kenya is facing mounting regulatory pressure after a series of client mismanagement cases exposed serious governance failures, weak internal controls, and staff accountability gaps within the institution. The unfolding New Mega Africa Ltd matter, alongside related litigation involving key corporate clients, has triggered board-level intervention and forced top management to initiate sweeping reforms aimed at restoring operational integrity and regulatory confidence. In response to the crisis, Group Managing Director Kenny Fihla has reportedly ordered immediate corrective action, directing that personnel implicated in alleged operational lapses, mismanagement, or procedural failures be dealt with decisively. This dossier outlines the key developments, personnel movements, client impacts, and the expanding web of litigation confronting the bank. Sophie Omondi Sophie Omondi, formerly a Relationship Manager at Absa Bank in Mombasa, resigned citing intense internal pressure. She alleges that she was asked to provide false affidavits despite never having managed the New Mega Africa client relationship—an action she considered inconsistent with her professional knowledge of the case. Following her resignation, Omondi claims that Absa Bank issued negative references to prospective employers, allegedly linking her to mismanagement claims involving another client, Shakab Tea Exporters, a Mombasa-based tea company—allegations she firmly denies. Shakab Tea Exporters is currently in court with Absa Bank over claims that bank staff lured the company from NCBA Bank, where it had enjoyed a stable and cordial banking relationship. According to Shakab, Absa promised significantly reduced interest rates, a proposition that influenced the move. However, senior managers in Nairobi and Mombasa allegedly later mismanaged the account. Court filings allege that the bank arbitrarily cancelled facilities, discussed Shakab’s business with competitors and feuding family members, and later demanded kickbacks for access to banking facilities. During this period, Shakab reportedly lost a major export client and incurred heavy penalties from the East Africa Tea Traders Association (EATTA). Court intervention was required to compel the bank and its employees to conduct themselves with decorum. Documents in possession indicate that the disputed sum of USD 1,655,483.59 related to pre-shipment purchases and drawdowns paid by the second defendant to EATTA, with the stock already physically present in Shakab’s warehouses at the time Absa took over the account. The company contends it was forced to pay twice for the same sums. Further complaints state that post-shipment export receivables totaling USD 2,295,390.18 were held by the second defendant during the takeover but were allegedly masked under an overdraft of USD 1,500,000, rather than being properly referenced. Omondi’s departure has raised serious concerns about internal pressure, staff morale, and the risks associated with relying on employees under duress in sensitive legal matters. Elizabeth Wasunna Elizabeth Wasunna, the former Business Banking Director at Absa Bank, was asked to step down by the Board. The decision was reportedly informed by allegations of mismanagement, client dissatisfaction, financial losses, and litigation arising from key clients in Mombasa and Nairobi. These challenges are said to have contributed to operational inefficiencies, increased financial exposure, and mounting legal battles. Wasunna has stated that she was made a scapegoat for broader leadership failures within the Executive Committee, particularly during the tenure of CEO Abdi Mohamed, during which Credit and Finance teams allegedly operated independently and circumvented senior oversight. Renato D’Souza Renato D’Souza, recruited from Stanbic Bank by Group MD Kenny Fihla, has been tasked with addressing legacy client disputes, closing operational gaps, and restoring confidence in Absa’s business banking practices. Serah Muthui Serah Muthui, described by insiders as elusive and controversial, is an Absa Bank staff member facing a series of serious allegations. She is accused of intimidating staff, leaking customers’ bank details, and failing to follow proper staff management procedures. It is further alleged that she has relied on her relationship with her brother, Moses Muthui, said to be a director at the bank, to shield herself from accountability. Her name has appeared in Mwangi Macharia vs Absa Bank, Cause E065 of 2023 [2024] KEELRC 2399 (KLR), decided on 1 October 2024. More recently, it is alleged that Muthui has been linked to a robbery incident that occurred on January 10 at approximately 1:00 p.m. at Epic Business Park. A victim who had withdrawn KSh 835,000 from Equity Bank and Absa Bank was reportedly trailed to a parking area, where the theft occurred after the victim exited the vehicle. Wycliffe Makori Wycliffe Makori remains a central witness in the New Mega Africa case and is alleged to be the mastermind behind a customer extortion syndicate operating within Absa’s Mombasa branch. Makori is accused of accessing sensitive internal client information and selling it to competitors for a fee. He is central to several of the allegations raised by New Mega Africa. Despite this, the bank is reportedly keen on retaining him, fearing that his exit could jeopardize its legal strategy. Sources indicate that Absa’s progress in the litigation heavily depends on his testimony, underscoring the legal and operational risks of relying on a conflicted staff member. New Mega Africa Matter The case involves allegations of unauthorized disclosure of confidential client information, blackmail, solicitation of money by bank staff, and delays in restructuring credit facilities following the post-COVID economic downturn. The matter has exposed significant gaps in client management, documentation, and staff oversight, prompting internal reviews and drawing regulatory attention. Shakab Tea Exporters Case Shakab Tea Exporters challenged Absa Bank in court over alleged pressure tactics, solicitation of illegal fees, and interference in its business operations. The court ruled in favor of Shakab, citing precedents including the New Mega Africa case, and ordered the bank to refrain from interfering in the company’s affairs or compromising client autonomy. The ruling underscored the reputational and legal risks arising from improper client relationship management. Board Oversight and Executive Action Group MD Kenny Fihla has emphasized accountability, transparency, and operational integrity across Absa’s business banking units. Immediate directives include: Investigating personnel implicated in the New Mega Africa and related matters,strengthening controls over sensitive client information,reviewing employee conduct, incentives, and compliance training,and enhancing oversight of senior relationship managers and corporate credit teams The Board has explicitly linked recent personnel changes to the bank’s broader operational and reputational recovery. Regulatory and Reputational Considerations Ongoing litigation and internal investigations have attracted regulatory scrutiny, particularly regarding handling of confidential client information,Staff accountability in high-risk accounts,Compliance with corporate governance standards. Reports indicate that correspondence from the Central Bank of Kenya (CBK) has prompted action on systemic client management failures and risk mitigation. Absa Bank Kenya is undergoing a significant leadership and operational recalibration. Senior exits, escalating litigation, and regulatory scrutiny reflect an institution under pressure to restore trust. As the New Mega Africa case and related disputes continue to unfold, the effectiveness of corrective measures, personnel accountability, and governance reforms will be critical in determining whether Absa can rebuild confidence among clients, regulators, and stakeholders.