Absa Bank Kenya is facing one of the most serious internal crises in recent years after revelations of alleged client mismanagement exposed deep weaknesses in the bank’s internal controls and staff accountability systems.
The unfolding controversy has been triggered by disputes surrounding corporate accounts, most notably the New Mega Africa Ltd matter, which has brought the bank under growing legal and regulatory scrutiny.
The scale of the crisis has forced intervention from Absa Group Managing Director Kenny Fihla, who has ordered immediate action against staff linked to procedural failures, unethical conduct, and mishandling of corporate client relationships.
Senior executives within the bank now face pressure to restore confidence among corporate clients, regulators, and the public as the situation threatens the lender’s reputation.
The scandal has already triggered several internal changes within the bank as management attempts to contain the fallout.
One of the first major departures was Sophie Omondi, a relationship manager previously stationed in Mombasa. Omondi resigned amid claims that she was under intense internal pressure related to the New Mega Africa dispute.
She maintains that she was pushed to sign legal documents despite not having handled the account in question.
Her exit has raised concerns about how internal legal processes are handled and whether staff are being pressured to take responsibility for issues beyond their roles.
Omondi has also alleged that the bank provided negative references to potential employers, linking her to allegations of mismanagement in another dispute involving Shakab Tea Exporters.
The case involving Shakab Tea Exporters has become another flashpoint in the growing crisis.
The Mombasa based exporter accused the bank of interfering with its operations and mishandling financial arrangements related to export financing.
According to documents linked to the dispute, the company faced serious financial losses after banking facilities were allegedly withdrawn abruptly.
Sensitive business information was also reportedly discussed with competitors, while the company claims it was pressured to make payments to maintain access to its banking facilities.
The dispute escalated into court proceedings where the court ruled in favour of the exporter and ordered the bank not to interfere with the company’s operations.
The ruling exposed weaknesses in the bank’s handling of corporate clients and raised concerns about governance within its business banking division.
The controversy has also reached the upper levels of management.
Elizabeth Wasunna, the former Director of Business Banking, was reportedly asked to step aside following internal reviews linked to the client disputes.
Sources within the bank indicate the board attributed the move to concerns over mismanagement, client dissatisfaction, and the rising risk of litigation.
Wasunna has reportedly argued that she became a scapegoat for broader failures within the executive leadership structure.
During the tenure of former CEO Abdi Mohamed, some departments including credit and finance allegedly operated with limited oversight from senior leadership, creating gaps in accountability.
To address the growing crisis, the bank has brought in Renato D’Souza, a senior banking executive recruited from Stanbic Bank, to lead efforts to stabilise corporate banking operations.
His mandate includes reviewing disputed accounts, tightening operational controls, and rebuilding confidence among business clients.
Several other staff members have also come under scrutiny.
Serah Muthui, a bank employee whose name has surfaced in several disputes, faces allegations ranging from intimidation of clients to the leakage of confidential banking information.
Her name has also appeared in legal filings connected to disputes involving bank customers.
There are also claims linking her to incidents where clients were allegedly followed after withdrawing money from bank branches, raising concerns about internal security practices.
Another employee, Wycliffe Makori, is reportedly a key witness in the New Mega Africa case.
He faces accusations of misusing internal access to client accounts and allegedly sharing information with competitors.
Despite the allegations, the bank is said to consider him important to ongoing investigations because of his role in internal documentation.
The dispute involving New Mega Africa Ltd has become central to the current crisis.
The case involves allegations that confidential client information was shared without authorization.
There are also claims of blackmail and improper solicitation of funds connected to efforts to restructure credit facilities after the economic challenges caused by the COVID era.
The dispute has drawn attention from regulators who are now examining whether internal procedures were properly followed.
Investigators are focusing on how client data was handled, whether credit restructuring processes were delayed deliberately, and whether staff acted outside established banking regulations.
The crisis has also attracted the attention of Central Bank of Kenya, which has reportedly written to the bank seeking explanations regarding governance and compliance failures.
Regulators are particularly concerned about the handling of confidential client information and the level of oversight exercised over corporate banking staff.
The review could result in regulatory sanctions if systemic weaknesses are confirmed.
Facing mounting pressure, Group Managing Director Kenny Fihla has ordered sweeping reforms aimed at restoring order within the bank.
The measures include internal investigations into staff involved in the disputed accounts, strengthening controls over client data, and reviewing compliance programs across departments.
Senior relationship managers and corporate credit teams are also expected to face increased monitoring as the bank attempts to prevent similar incidents in the future.
Bank leadership has emphasized that restoring trust with corporate clients is now a top priority.
The unfolding crisis has exposed deep structural challenges in the management of corporate accounts within the bank.
Legal battles, executive changes, and regulatory scrutiny have placed the institution under intense pressure.
The bank’s response in the coming months will determine whether it can restore credibility and regain the confidence of clients and regulators.
For now, the Absa client mismanagement crisis has become a stark reminder of how governance failures within financial institutions can quickly escalate into reputational and legal risks.
