A businessman is demanding immediate reimbursement from Co-operative Bank of Kenya following what he describes as a series of anomalous and unauthorized transactions that resulted in financial losses amounting to Sh1,916,000.
In a formal complaint filed through his legal representatives, Erick Nyarango Ombego has requested an urgent reconciliation and refund of the contested amount, along with interest at prevailing commercial rates dating from the time the funds were debited from his account number 01192347415500, held at Co-operative Bank.
Ombego, who is also the CEO of Erijam Enterprises Ltd, is further seeking compensation for irreparable financial distress and a comprehensive explanation as to how the alleged discrepancies occurred.
The current claim arises from two cheques, each valued at Sh 958,000, initially declared unpaid due to insufficient funds, cheque number 15 on July 6, 2023, and cheque number 27 on July 11, 2023.
However, bank records indicate that both cheques were later paid out from Ombego’s account, on July 13 and September 29 respectively, despite the account reportedly lacking sufficient funds on both occasions.
This is not the first time Ombego has taken issue with the bank’s conduct. He had previously filed a petition in the High Court on behalf of Erijam Enterprises Ltd, accusing Co-operative Bank of unauthorized transfers from the company’s account without the consent of its directors.
Earlier, Erijam sought over Sh 30 million in damages, alleging that the bank had unlawfully processed payments totaling Sh 10.9 million between June and September 2023, even after some of the cheques in question had already been dishonored and penalty fees imposed.
The company further claimed that most of the payments had already been settled through other channels, such as bank transfers and cash, making the additional transactions duplicative and damaging.
According to Ombego, the case had eventually been settled, but he says the latest issue is indicative of a recurring pattern of financial mismanagement and breach of trust by the bank.
