The court added that KCB's internal process of escalating the complaint from its headquarters to the branch "resulted in a delay that allowed the recipient to withdraw the funds."
Prime
Thursday, July 16, 2026 - 4 min read
The High Court upheld a Small Claims Court finding that KCB was negligent after failing to prevent withdrawal of the money despite receiving the customer's complaint within minutes of the transaction.
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The bank's liability arose from its failure to protect the account after the fraud had been reported.
The court said maker-checker approvals and payment schedules do not establish payment of the money.
Court rules that both institutions failed in their separate duties to protect the client from the fraud.
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