The High Court has delivered a resounding verdict against Ecobank Kenya Ltd. The bank has been ordered to pay a staggering Sh284 million to the estate of the late prominent politician Peter Mbiyu Koinange, a ruling that brings a significant turn in one of Kenya's longest-running inheritance sagas. The court's judgment found Ecobank culpable of negligence, willful misconduct, and a severe breach of its fiduciary duty, allowing unauthorized withdrawals from a protected family account despite clear standing court orders.
This judicial decree stems from an application filed by Eddah Wanjiru, one of the court-appointed administrators and a widow of the late minister. She meticulously laid out the facts: the Sh284 million in question represented the remaining balance from the lawful sale of Close Burn Estate, a vast 100-acre property. Crucially, this substantial sum was explicitly mandated by a court order, issued on July 26, 2011, to be held in trust by Ecobank. The directive was unambiguous: no disbursement of these funds was permitted without further explicit court directions. Yet, in a shocking turn of events, the entire sum vanished, withdrawn by unknown persons without any judicial knowledge or approval.
Ecobank, in its defense, presented arguments through its branch manager, Violet Monari, claiming ignorance of the 2011 court order and asserting that all transactions were executed based on instructions from the designated account holders. However, Justice Eric Ogolla, presiding over the case, meticulously dismantled these claims. He emphasized that the bank bore an undeniable responsibility to be aware that the account in question pertained to the estate of a deceased person – a fact that inherently demanded a higher degree of vigilance and oversight. Furthermore, the sheer magnitude of the funds involved, Sh284 million, should have unequivocally triggered robust managerial oversight and a more rigorous verification process than was evidently applied.
This judgment is not an isolated incident but rather a significant chapter in the protracted inheritance battle over Mbiyu Koinange's vast estate, a legal struggle that has spanned an astonishing four decades. The court's decision meticulously referenced previous judicial directives pertinent to the case, including a May 2010 order by Justice Roselyn Nambuye for the sale of the Close Burn Estate itself, and the pivotal July 2011 order by Justice David Maraga that mandated the Sh284 million to be held in trust. These past rulings underscore the bank's established obligation to protect the funds in line with the ongoing legal complexities of the estate.
The High Court's ruling sends a powerful message to the financial industry: the duty of care for client funds, especially those held in trust or related to estates, is paramount and cannot be understated. Banks are expected to go beyond mere transactional compliance and uphold their fiduciary responsibilities with unwavering diligence. Failure to do so, as demonstrated in this case, can lead to severe financial repercussions and a significant erosion of public trust.
