Businessman Accuses KCB of Mishandling Sh2.8M International Payments, Blames Bank for Business Collapse
Businessman Powel, who says he previously operated Powel Jea Enterprise Limited, has accused KCB Bank of mishandling two international payments in 2023, claiming the resulting delays and reversals crippled his working capital, pushed his business into collapse and left him fighting the bank in court three years later.
His account was shared publicly by Ndungu Nyoro, who said the story had left him deeply disturbed and announced that he would no longer remain a KCB customer after reading the businessman’s description of what allegedly happened.
The Dispute Begins
According to Powel, the dispute began after he travelled to India in 2023 to source T-shirt fabric from a supplier, placing an initial deposit of Sh2 million against goods valued at about Sh5.92 million before returning to Kenya to arrange payment of the outstanding balance.
He says he later sent Sh1 million through PesaLink, paying about Sh31,000 in charges because of the exchange rate, before deciding that the remaining payments should be processed through the bank after negotiating a better foreign exchange rate.
Powel claims he had about Sh1.95 million in his KCB account and instructed the bank to send Sh1.92 million to the Indian supplier, before later depositing another Sh900,000 at KCB Two Rivers after withdrawing money from his Sidian Bank account.
Payments Blocked, Recall Confusion
According to his account, both payments were sent through the banking system, but three days later his supplier informed him that the last two transfers could not be accessed and asked him to provide a telegraphic transfer letter confirming that the payments had come from him for the purchase of fabric.
Powel says he then visited KCB Jogoo Road, where an assistant manager identified as Kevin allegedly advised him that the fastest solution would be to recall the funds and resend them through the company account rather than wait for the supporting letter to move through intermediary banks.
He claims the recall instructions were prepared and signed, but says the branch manager, whom he identifies as Eunice, later warned that recalling the money could expose him to significant foreign exchange losses once dollars were converted back into Kenya shillings.
According to Powel, another letter was then prepared cancelling the recall request, after which he says bank officials assured him that the matter had been corrected and that the payments would proceed normally.
Funds Stuck for Two Months
He claims the problem became serious about a week later when the supplier informed him that the funds had nevertheless been recalled, prompting repeated visits to the bank as he tried to establish where the money had gone.
Powel says he was subsequently informed that the funds were being held by an intermediary bank in the United States, but claims the matter then remained unresolved for approximately two months despite repeated visits and demands for information.
During that period, he says his company was servicing a bank loan at approximately Sh550,000 every month, but the interruption of his working capital left the account falling into arrears as his business struggled to operate without the money tied up in the disputed transaction.
He says he eventually instructed a lawyer to issue a demand requiring KCB to complete the transactions within 72 hours, but claims the bank did not provide the outcome he expected and that he still did not receive a clear explanation concerning the location of the funds.
Reversals and Loan Repayments
Powel alleges that he later noticed a series of transactions appearing in his account, including reversals and loan repayments, before discovering from his statement that the Sh1.9 million transaction had been reversed and the money applied towards clearing outstanding loans.
He says his supplier separately confirmed receiving the Sh900,000 payment, leaving his working capital split and making it impossible for him to complete payment for the customized goods he had ordered from India.
Court Battle Since 2023
According to Powel, he then moved to court seeking orders that would compel the bank to complete the disputed transaction, arguing that the delayed payment had already damaged his business and made it difficult to continue trading or servicing existing financial obligations.
He claims the court matter has continued since August 2023 and alleges that KCB failed to attend several scheduled proceedings before the court eventually fixed the matter for judgment on August 28, 2026.
Powel further claims that KCB later applied to reopen the file before judgment could be delivered, with the court allowing the application and setting a fresh hearing date for December 9, 2026.
Business Collapse and Personal Toll
He says the commercial consequences have been severe, claiming his business has collapsed, his vehicles are gone, his children are no longer attending school normally and debts owed to friends and microfinance lenders have continued piling up.
Powel also says about 30 people who previously worked for his company, including tailors and sales staff, lost their jobs after the business collapsed, while KCB allegedly auctioned company property connected to rent arrears at premises he occupied at Jogoo Road.
He claims the Indian supplier has refused to release the goods because they were customized specifically for his order and cannot easily be sold elsewhere, with storage charges continuing to accumulate as the dispute remains unresolved.
Powel further alleges that KCB continues demanding repayment of outstanding loans, holds securities over his land and has listed him with credit reference bureaus despite what he says are court orders requiring his removal from the listing.
Appeal to Central Bank of Kenya
The businessman has now appealed for intervention from the Central Bank of Kenya, saying he wants the circumstances surrounding the international transfers examined and wants an explanation of how the handling of the transactions affected his business.
His account also raises serious concerns about his personal wellbeing, with Powel describing severe emotional distress and expressing fear about what may happen to him as the financial and legal pressure continues.