Co-operative Bank Faces Backlash as Businessman Seeks Sh1.9 Million Refund

A businessman is urgently seeking reimbursement from the Co-operative Bank of Kenya, citing a series of irregular and unauthorized transactions that have led to significant financial losses totaling Sh1,916,000.

In a formal complaint submitted through his legal team, Erick Nyarango Ombego has called for an immediate reconciliation of his account and a refund of the disputed amount, along with interest calculated at current commercial rates from the date the funds were withdrawn from his account, number 01192347415500, at the bank.

Ombego, who serves as the CEO of Erijam Enterprises Ltd, is also pursuing compensation for the severe financial distress he has experienced and demands a thorough explanation regarding the nature of the discrepancies.

The issue stems from two cheques, each worth Sh958,000, which were initially reported as unpaid due to insufficient funds—cheque number 15 on July 6, 2023, and cheque number 27 on July 11, 2023. However, bank records later revealed that both cheques were processed from Ombego’s account on July 13 and September 29, respectively, despite the account allegedly lacking sufficient funds at those times.

This situation is not the first instance of Ombego raising concerns about the bank’s practices; he previously filed a petition in the High Court on behalf of Erijam Enterprises Ltd, accusing Co-operative Bank of executing unauthorized transfers from the company’s account without the approval of its directors.

In that earlier case, Erijam sought over Sh30 million in damages, claiming the bank had improperly processed payments totaling Sh10.9 million between June and September 2023, even after some cheques had been dishonored and penalty fees incurred. The company argued that many of these payments had already been settled through other means, such as bank transfers and cash, rendering the additional transactions unnecessary and harmful.