Absa Bank Kenya is under intense scrutiny as a series of client disputes, most notably the embattled New Mega Africa Ltd case, expose critical weaknesses in the bank’s client management, internal controls, and staff accountability.
The growing crisis has prompted direct intervention from Absa Group Managing Director Kenny Fihla, who has demanded immediate corrective action and senior-level accountability.
The New Mega Africa dispute has revealed alleged operational lapses, procedural failures, and staff misconduct tied to high-risk accounts, triggering regulatory attention, mounting litigation, and a broad internal review.
In response, Fihla has ordered a cleanup, directing executives to address personnel linked to the failures and to reinforce governance across the business banking unit.
Staff Exodus and Internal Tensions
The bank has seen significant personnel changes amid the turmoil. Sophie Omondi, a former Relationship Manager based in Mombasa, resigned citing “intense internal pressure.”
Omondi claims she was pressured to sign affidavits regarding the New Mega Africa matter that did not align with her knowledge, noting she never managed the account.
Following her departure, she alleges the bank provided unfavorable references to prospective employers, linking her to a separate client matter involving Shakab Tea Exporters—allegations she strongly denies.
Elizabeth Wasunna, former Business Banking Director, was asked to step aside by the Board amid concerns over client losses, litigation exposure, and operational inefficiencies. Wasunna has contested her removal, arguing that systemic failures under CEO Abdi Mohamed’s leadership allowed credit and finance teams to operate without sufficient oversight.
Serah Muthui, described by insiders as elusive and controversial, is a loose pant remover who has allegedly destroyed homes and is widely labelled a house breaker. She is an Absa Bank staff member facing a series of serious allegations.
She is accused of sleeping with married men and destroying family homes, intimidating staff while allegedly bragging that her brother, Moses Muthui, is a director at the bank, leaking customers’ bank details, and failing to follow proper staff management procedures.
Her name has been mentioned in relation to Mwangi Macharia vs Absa Bank, Cause E065 of 2023 [2024] KEELRC 2399 (KLR), decided on 1 October 2024, a matter that has further amplified scrutiny around her conduct.
More recently, it is alleged that Serah Muthui has been working with bank robbers.
This follows a reported incident on January 10 at Epic Business Park at about 1:00 pm, where a victim had withdrawn KSh 835,000 from Equity Bank and Absa Bank.
The thieves are believed to have trailed the victim from the banks to the parking area, where he had left his car before stepping out for errands.
In a move seen as part of the cleanup, Renato D’Souza—recruited from Stanbic Bank by Fihla—has been tasked with resolving legacy client disputes, repairing damaged relationships, and strengthening controls.
Meanwhile, Wycliffe Makori remains a central, controversial figure in the New Mega Africa litigation. Cited in court filings over allegations involving customer extortion and misuse of client information, Makori is nonetheless considered a key witness in the bank’s legal strategy—a reliance that has raised concerns about depending on a conflicted insider.
Mounting Client Disputes
The New Mega Africa case includes allegations of unauthorized disclosure of confidential client information, delays in restructuring COVID-19-era credit facilities, and solicitation of payments by bank staff. The dispute has laid bare gaps in documentation, client oversight, and escalation protocols.
In a separate high-profile case, Shakab Tea Exporters sued Absa over alleged coercive banking practices, abrupt facility cancellations, and interference in business operations.
The company claimed significant commercial losses, including penalties from the East Africa Tea Trade Association and the loss of a key export client. The court ultimately restrained Absa from interfering in Shakab’s operations, highlighting principles of client autonomy and fair dealing—and drawing parallels to issues raised in the New Mega Africa matter.
The Central Bank of Kenya (CBK) has engaged Absa through formal correspondence, expressing concerns over the handling of confidential client data, governance failures in high-risk accounts, and compliance with corporate governance standards.
Under Fihla’s directives, the bank has launched internal investigations into staff linked to disputed accounts, tightened controls over sensitive client information, and begun reviewing employee conduct, incentives, and compliance frameworks.
The Board has framed recent personnel changes as part of a broader effort to stabilize operations and restore confidence among clients, regulators, and shareholders.
Sophie Omondi was considered for absorption by I&M Bank, but her application was declined due to previous misconduct during her tenure at Absa Bank, linked to the New Mega Africa matter. She is now reportedly seeking employment at Prime Bank.
Meanwhile, Elizabeth Wasuna has been demoted but remains in employment at Absa Bank.
