Omtatah calls for CBK, DCI probe into Sh1.5 billion Absa misconduct claims
Busia Senator Andrew Okiya Omtatah Okoiti has called for investigations by the Central Bank of Kenya (CBK) and the Directorate of Criminal Investigations (DCI) into allegations of unlawful payments, breach of customer confidentiality and other alleged misconduct involving officials of Absa Bank Kenya PLC.
The demands arise from a long-running dispute between Absa and New Mega Africa Limited, a road haulage company, in Mombasa Commercial Case No. E068 of 2022.
In letters dated September 17, 2026, and received by the two institutions on September 21, Omtatah asked the CBK to examine possible regulatory breaches and the DCI to investigate allegations that could amount to criminal offences.
The senator said the complaints raise questions about the conduct of bank officials and compliance with banking laws, consumer protection requirements and data protection regulations.
New Mega Africa began its banking relationship with Absa in March 2020.
The company provided transportation services to Mombasa Cement Limited, transporting clinker to Tororo Cement in Uganda.
Absa financed the company’s trade receivables and truck fleet.
The company obtained several banking facilities, including term loans, temporary excess facilities, multi-option facilities and bank guarantees.
On September 13, 2021, New Mega Africa requested a restructuring of its facilities by consolidating its outstanding loans into a single term loan.
According to documents cited by Omtatah, the restructuring process took about seven months.
New Mega Africa alleges that delays in processing the financing affected its ability to meet fuel and other operational costs and contributed to the cancellation of business contracts.
The company further claims that the delays contributed to the cancellation of an arrangement involving 11 trucks leased from Mombasa Cement.
It subsequently lost contracts with Mombasa Cement and Tororo Cement and ceased operations involving a fleet of more than 40 trucks, according to the complaint.
Alleged payments to bank officials
The DCI complaint contains allegations that some Absa officials demanded payments in connection with loan drawdowns and other banking services.
New Mega Africa claims it was asked to make cash and M-Pesa payments whenever it sought loan drawdowns or other banking facilities.
A witness statement by company director David Omusala Abai lists alleged transactions ranging from Sh7,000 to Sh500,000 through M-Pesa, bank transfers and cash.
One of the transactions cited is an alleged Sh100,000 payment to Evelyn Essendi, identified in the documents as the wife of Absa official Wycliffe Makori, in connection with a temporary overdraft request involving a Sh3 million disbursement.
Another alleged Sh40,000 payment is linked to Makori and a Tororo payment involving a Sh2.56 million disbursement.
The complaint also alleges that Makori received Sh51,000 from the company’s director in connection with insurance for a vehicle jointly registered in the name of the bank and the officer.
Omtatah cites witness statements in which Makori acknowledged several financial transactions involving himself and the company’s director but described them as personal or friendly transactions.
Makori also denied coercing New Mega Africa into lending Sh820,000 to another Absa client, Buzz Afrique, and denied receiving a commission from the transaction.
Omtatah says the transactions should be subjected to regulatory scrutiny because of the officers’ roles in processing New Mega Africa’s credit facilities.
The allegations have not been established as criminal findings.
Concerns over alleged disclosure of confidential information
Omtatah has separately raised concerns over the alleged disclosure of New Mega Africa’s confidential financial information to third parties.
The company alleges that some Absa officials disclosed information about its financial position without its knowledge or consent.
According to a statement cited in Omtatah’s complaint, a supplier and a customer confronted New Mega Africa’s director with Absa correspondence and a bank statement showing the company’s overdrawn position.
The CBK complaint also cites the statement of Evans Murumba Wekesa, a former Absa Sector Head for Business Banking in the Coast Region.
Omtatah says the statement indicates that Absa officer Wycliffe Makori made a telephone call to Jared Makori of the Kenya National Highways Authority concerning New Mega Africa’s financial difficulties.
According to the documents, Makori later acknowledged making the call shortly after a meeting with New Mega Africa, after which the matter was escalated within Absa.
Omtatah argues that if established, the alleged disclosure could amount to a breach of the bank’s duty of confidentiality under Section 31 of the Banking Act and applicable data protection requirements.
He has asked CBK to determine whether Absa breached its obligations under banking and data protection laws.
Questions over internal investigation
Omtatah has also questioned Absa’s handling of complaints raised by New Mega Africa.
The CBK complaint states that Absa commissioned an internal investigation after receiving additional information from the company in September 2022.
According to a statement by Makori cited in the complaint, the investigation found no disclosure of New Mega Africa’s information to third parties and no wrongdoing by bank staff.
However, Omtatah points to Murumba’s witness statement, which he says indicates that the investigation was conducted after Murumba had left the bank.
The senator wants CBK to examine how the bank handled the complaints and whether it maintained effective procedures for receiving, investigating and resolving customer complaints and keeping complainants informed, as required under CBK Prudential Guidelines.
He has also asked the regulator to assess Absa’s systems for handling complaints, whistleblowing, anti-bribery controls, data protection and internal escalation of serious allegations.
Omtatah’s demands
Omtatah has asked the DCI to record statements from the bank officials named in the complaints and obtain M-Pesa and bank transfer records relating to the alleged payments.
He has also requested investigators to obtain Absa’s internal investigation records and credit files relating to New Mega Africa’s facilities.
Other requests include obtaining call data records involving Makori and Jared Makori, interviewing the KeNHA official and examining Absa’s compliance systems.
The senator has further asked that the matter be referred to the Ethics and Anti-Corruption Commission and the Office of the Data Protection Commissioner for possible parallel investigations.
On the regulatory side, Omtatah wants CBK to establish whether any breaches occurred and, if the allegations are substantiated, consider appropriate regulatory action, including sanctions, financial penalties and measures to strengthen staff training on data protection and anti-bribery compliance.
Omtatah said the proposed investigations would be separate from the ongoing court proceedings and would enable CBK to exercise its regulatory mandate over the bank.
The allegations form part of an ongoing civil dispute between New Mega Africa Limited and Absa Bank Kenya PLC.
