Regulators have been urged to take swift action over claims that a Kenyan bank mishandled a customer’s account in a manner that raises serious ethical and legal questions.
The call was made by George Njoroge, who expressed concern over allegations involving I&M Bank Kenya and the treatment of one of its customers. He argued that the issues raised go beyond an individual complaint and touch on the wider question of how financial institutions exercise power over customers’ money.
In his view, the matter requires immediate attention from the Central Bank of Kenya to protect public trust in the banking system.
At the centre of the controversy is businessman Paul Ouma Neko, who says he has used I&M Bank for several years to run his business.
He explained that his account had been active, with millions of shillings passing through it in the course of normal operations during the year.
According to him, nothing about his banking activity was unusual or outside standard business practice.
Neko stated that after making a cash withdrawal of two million shillings, he later returned to the bank only to find that his account had been restricted.
He claims this happened without warning and at a time when he urgently needed access to his funds. With several million shillings reportedly still held in the account, he says the restriction disrupted his business plans and personal financial responsibilities during a busy period.
He further alleged that when he sought answers, he was repeatedly asked to explain where the money had come from.
Neko maintains that he cooperated fully, submitting documents and confirmations to show that the funds were earned through legitimate business.
Despite this, he claims the process became drawn out, with no clear timeline or explanation provided for the continued restriction on his account.
The situation reportedly escalated after he sought legal advice. Neko alleges that he was later contacted by an unknown individual who proposed a private meeting.
During that encounter, he claims he was told that his banking problem could be resolved if he agreed to give up a portion of the money held in the frozen account.
He described the demand as shocking and deeply troubling, especially because the funds in question were his own earnings.
Not long after this interaction, Neko says he was taken through several offices within the bank before his account access was restored. While he eventually regained control of his funds, he insists the experience left him shaken and doubtful about the safety of customers within the banking system.
Reacting to these claims, Njoroge criticised how the bank addressed the issue publicly. He suggested that the response failed to directly confront the allegations and did little to reassure the public.
In his view, silence or vague statements only increase suspicion, especially when serious accusations remain unanswered.He also questioned what he sees as unequal treatment of customers, noting that banks often act swiftly against clients who miss obligations, while allegations of internal misconduct are handled quietly.
Njoroge insists that transparency and accountability are essential if confidence in financial institutions is to be maintained.
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