Ecobank Kenya officials risk jail term over court-ordered payment of Ksh.62M

The bank stands accused of ignoring an order issued by Lady Justice Josephine Mong’are on December 5, 2024.

The court order mandated Ecobank to transfer the sum from one of its accounts to Rashi, the fifth plaintiff in an ongoing financial dispute. This amount was meant to cover outstanding salaries and allowances owed to her.

"The total sum of USD 487,047.99/- be released to the 5th Plaintiff from one of the Interested Party’s Bank Accounts held at Ecobank Kenya Limited to offset her pending salaries and allowances," Justice Mong'are ruled.

The court further permitted Rashi, who is an authorized signatory, to withdraw up to $2,000 monthly as per a resolution made on June 25, 2021.

Despite the court’s clarity, Ecobank has allegedly refused to comply, drawing sharp criticism from Rashi’s lawyer, Wilfred Nyamu. 

In a formal notification to the bank, the plaintiffs’ legal team insisted on immediate action:

"We have noted your hesitation to comply with the orders of the court since service of the same. We are instructed to demand, which we hereby do, that you transfer the money into our client’s account as instructed within twenty-four (24) hours," reads the letter.

George Kithi, the lawyer representing Kiwipay Limited — whose funds are held by Ecobank — underscored the necessity of following the court’s directive. In his letter to the bank, he warned:

"Kindly purge the contempt to avoid any adverse action against yourselves."

The letter further cautioned that non-compliance would lead to contempt proceedings, potentially landing the CEO, Caroline Mbenge, Head of Legal, and other senior officials in prison.

The dispute dates back to May 2024 when Rashi filed a petition through her lawyer to access the withheld funds to settle her unpaid salaries.