Banks to protect disputed funds after payment errors - Business Daily

Kenya's High Court upheld a Small Claims Court ruling that Kenya Commercial Bank (KCB) was negligent for failing to prevent the withdrawal of Sh2,050 mistakenly sent via M-Pesa. Lawyer Sammy Kamonjo Kiburi transferred the money to the wrong KCB Paybill and immediately contacted KCB customer care, which promised reversal within seven days, but the funds were withdrawn before. The court ruled that banks must act promptly to preserve disputed funds once notified of an error and cannot rely solely on customer confidentiality or internal procedures that delay recovery.