ABSA IN TURMOIL AS GROUP MD KENNY FIHLA ORDERS PURGE OVER CLIENT MISMANAGEMENT SCANDAL
A deepening client mismanagement scandal has thrown Absa Bank Kenya into crisis, exposing serious failures in internal controls, client handling, and staff accountability. The fallout from the New Mega Africa Ltd matter has triggered internal purges, board level alarm, and regulatory scrutiny that now threatens the bank with litigation, sanctions, and lasting reputational damage.
At the centre of the storm is Group Managing Director Kenny Fihla, who has ordered an immediate and uncompromising clean up. Staff linked to procedural failures, unethical conduct, or client abuse are to be dealt with decisively. The message from the top is blunt. Fix the rot or face the consequences.
How the Crisis Broke Open
What began as a single client dispute has cracked open a far wider problem inside Absa’s corporate and business banking operations. Internal reviews point to weak oversight, poor segregation of duties, and a culture where accountability failed to bite.
As pressure mounted, personnel changes followed swiftly, revealing the scale of dysfunction beneath the surface.
Staff Under Pressure and Silenced Exits
Sophie Omondi, a former relationship manager based in Mombasa, resigned after what she describes as intense internal pressure. She says she was pushed to sign false affidavits in a matter she never handled, the New Mega Africa account.
Her exit has raised disturbing questions about how Absa manages staff in sensitive legal disputes and whether employees are being leaned on to shield systemic failures.
Omondi further alleges the bank issued damaging references to prospective employers, linking her to mismanagement claims in a separate high profile dispute involving Shakab Tea Exporters. The claims point to a culture where reputational blame is shifted downward while deeper failures remain unaddressed.
The Shakab Tea Exporters Scandal
The Shakab case lays bare some of the most serious allegations facing the bank.
According to court records, Absa is accused of arbitrarily cancelling facilities, disclosing confidential business information to competitors, and demanding kickbacks as a condition for access to banking services. The consequences were devastating.
Shakab reportedly lost a major export client and was penalised heavily by the East Africa Tea Traders Association.
Financial documents show the company was forced to pay USD 1,655,483.59 twice for pre shipment stock already sitting in its warehouses. Post shipment receivables worth USD 2,295,390.18 were mishandled under an overdraft of USD 1,500,000 instead of being properly credited.
The court ultimately ruled against Absa, ordering the bank to stop interfering with Shakab’s business operations. The judgment stands as a sharp rebuke of corporate overreach and procedural abuse.
Boardroom Fallout and Executive Blame Games
The crisis has not spared the executive suite.
Elizabeth Wasunna, the former business banking director, was asked to step aside following board concerns over client dissatisfaction, financial losses, and mounting legal exposure. She maintains she was made a scapegoat for failures rooted in the Executive Committee.
During the tenure of former CEO Abdi Mohamed, Credit and Finance teams allegedly operated with minimal senior oversight, creating silos that allowed risky decisions to pass unchecked.
To steady the ship, Fihla recruited Renato D’Souza from Stanbic Bank. His mandate is clear. Clean up legacy disputes, close operational gaps, and restore confidence in Absa’s business banking arm. His success or failure may define the bank’s recovery.
Troubling Allegations Inside the Ranks
Other names continue to surface.
Serah Muthui faces allegations ranging from staff intimidation and client data leaks to links with criminal activity. Her name appears in multiple cases, including Mwangi Macharia versus Absa Bank Cause E065 of 2023. Reports claim clients were followed after large withdrawals, raising alarm over internal controls and staff vetting.
Wycliffe Makori, a key witness in the New Mega Africa case, is accused of abusing internal access to sell client information to competitors. Despite the claims, the bank is reportedly reluctant to act against him due to the importance of his testimony. The situation highlights a dangerous trade off between legal strategy and operational integrity.
Clients Caught in the Crossfire
The New Mega Africa matter itself involves allegations of unauthorised disclosure of confidential information, blackmail, solicitation of funds, and delays in restructuring credit facilities after the COVID downturn.
The case has attracted regulatory attention and exposed glaring weaknesses in documentation, staff supervision, and client protection. Internal probes are ongoing, but the damage is already done.
Regulators Step In
The board has now tied personnel changes directly to Absa’s operational survival.
Regulators, led by the Central Bank of Kenya, have issued letters demanding answers. Under scrutiny are the handling of sensitive client data, accountability in high risk accounts, and adherence to corporate governance standards.
Immediate actions ordered include internal investigations, tighter controls over client information, stricter monitoring of relationship managers and credit staff, and a review of incentives that may have encouraged reckless behaviour.
A Bank at a Crossroads
This crisis has exposed deep structural weaknesses in how Absa manages people, power, and client trust. Lawsuits are piling up. Regulators are watching closely. Confidence is fragile.
The clean up ordered by Kenny Fihla signals urgency and intent. But intent alone will not be enough.
If Absa fails to enforce accountability consistently and transparently, the reputational damage will deepen. If it succeeds, the bank may yet claw back trust.
For now, Absa stands exposed. And the reckoning is far from over.
