EcoBank Kenya’s Secretary, Caroline Mbenge, has found herself at the center of a growing scandal over allegations of fraudulent dealings that threaten the bank’s reputation and financial stability.
Mbenge is accused of colluding with fraudsters to defraud clients, including major shareholders, which has placed the bank in a precarious position, risking regulatory sanctions for financial misconduct.
Reports indicate that Mbenge has authorized illegal withdrawals amounting to millions of shillings from clients’ accounts.
This money was allegedly diverted to microfinance institutions through dubious transactions.
Bank statements reveal irregularities that suggest deliberate actions to siphon funds, raising questions about the integrity of the bank’s internal controls.
Furthermore, Mbenge’s actions have placed EcoBank in disrepute as clients increasingly lose trust in its operations.
Mbenge is also accused of defying court orders, particularly in cases where the bank was directed to settle legal disputes.
A recent instance involves her refusal to release USD 487,047.99 in unpaid salaries and allowances owed to Monthida Rashi, a client embroiled in a long-standing financial dispute with the bank.
The High Court, through Justice J.W.W. Mong’are, had ordered the release of the funds and even allowed Rashi to withdraw up to USD 2,000 monthly as per an earlier resolution.
Despite this clear directive, EcoBank has reportedly failed to comply, prompting legal threats from the plaintiff’s lawyer, Wilfred Nyamu.
Nyamu criticized the bank’s defiance, labeling it as a blatant disregard for the rule of law and issuing a 24-hour ultimatum for compliance.
Adding to the controversy, Mbenge has been accused of selectively complying with court orders, allegedly striking deals with litigants to secure kickbacks.
This practice has drawn sharp criticism from legal experts and stakeholders, who see it as an abuse of her position.
Failure to comply with the court directive now exposes Mbenge and other senior EcoBank officials to contempt of court proceedings, including possible imprisonment.
In another twist, allegations have surfaced linking Mbenge to a bribery scandal involving a judge.
Reports claim that the judge received a Sh200 million bribe to influence the outcome of a case in favor of the bank.
Following these revelations, Chief Justice Martha Koome transferred the implicated judge in a recent judiciary reshuffle.
The legal battle with Rashi began in May 2024, when she sought permission to withdraw funds as compensation for unpaid salaries.
Despite a favorable ruling, EcoBank’s continued non-compliance has heightened tensions.
Lawyer George Kithi, representing Kiwipay Limited, another aggrieved party, has also urged the bank to honor court orders to avoid further legal consequences.
He warned that failure to act could lead to severe penalties for the bank’s executives.
This saga has exposed systemic weaknesses within EcoBank Kenya and raised concerns over the management of its legal and financial departments.
Critics argue that the bank’s leadership must address these issues urgently to restore client confidence and avoid further legal and reputational damage.
However, EcoBank has yet to issue an official statement regarding the allegations, leaving many questions unanswered.
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