Shocking Claims: Businessman Fights for Sh1.9 Million Refund from Co-operative Bank

A businessman is demanding immediate reimbursement from Co-operative Bank of Kenya, citing a series of unauthorized transactions that led to financial losses of Sh1,916,000.

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and refund of the disputed amount, along with interest at current commercial rates from the date the funds were withdrawn from his account, number 01192347415500.

Ombego, who serves as the CEO of Erijam Enterprises Ltd, is also seeking compensation for significant financial distress and a detailed explanation of how these discrepancies occurred. The claim stems from two cheques, each worth Sh958,000, which were initially marked unpaid due to insufficient funds on July 6 and July 11, 2023.

However, bank records later showed that both cheques were paid from Ombego’s account on July 13 and September 29, despite the account reportedly lacking sufficient funds at those times.

This is not Ombego‘s first dispute with the bank; he previously filed a petition in the High Court on behalf of Erijam Enterprises Ltd, alleging unauthorized transfers from the company’s account without the directors’ consent.

Earlier, the company sought over Sh30 million in damages, claiming the bank unlawfully processed payments totaling Sh10.9 million between June and September 2023, even after some cheques had been dishonored and penalty fees applied. They argued that many of these payments had already been settled through other means, rendering the additional transactions duplicative and harmful.

According to Ombego, the case had eventually been settled, but he says the latest issue is indicative of a recurring pattern of financial mismanagement and breach of trust by the bank.