Court Makes Landmark Ruling on Recovery of Mobile Money Mistakenly Sent to the Wrong Bank Account

Welcome to the Money News Roundup. In today's edition, we cover a landmark High Court ruling that clarifies banks' responsibility in handling erroneous mobile money transfers. We also bring you the latest leadership appointments at Stanbic Bank and Equity Bank.

Banks Liable for Failing to Preserve Mistaken Money Transfers - Court 

The High Court has upheld a ruling holding KCB liable for failing to preserve Ksh2,050 mistakenly sent through M-Pesa to the wrong Paybill in February 2023.

As reported by the Business Daily, the court found Nakuru advocate Sammy Kamonjo Kiburi reported the error within minutes, but KCB failed to act before the funds were withdrawn. 

Justice Joseph Sergon ruled banks must take reasonable steps to safeguard disputed funds once notified, even if they cannot reverse transfers without the recipient's consent.

The court also held KCB should have disclosed the recipient's identity to aid recovery. It dismissed the bank's appeal, saying delays in its internal processes allowed the money to be withdrawn, amounting to negligence.

MPs to Begin Summoning School Principals Over Auditor-General's Reports 

Public secondary schools will, for the first time, appear before the National Assembly to answer questions on how they manage billions of shillings in public funds following the Auditor-General's reports on the institutions.

As reported by Nation, the Public Investments Committee on Governance and Education will begin with Category C1 (national) schools before extending the exercise to Category C2, C3 and C4 schools. 

Committee chairperson Dick Maungu said the move will close a long-standing oversight gap, noting that secondary schools manage significantly larger budgets than some institutions that already appear before Parliament.

Education CS Julius Ogamba welcomed the initiative, saying it would strengthen accountability. KESSHA also backed the move, with chairman Willie Kuria saying principals are ready to account for every shilling but urged Parliament to address capitation shortfalls.

High Court Orders Govt to Produce KPC Privatisation Records

The High Court has ordered the government to produce key documents related to the Ksh106 billion privatisation of Kenya Pipeline Company (KPC) within 21 days ahead of a constitutional petition challenging the sale. 

As reported by the Business Daily, Justice Patricia Nyaundi directed the disclosure of valuation reports, Cabinet memoranda, procurement records, IMF agreements and other transaction documents. 

The court declined the Attorney-General's bid to dismiss the case or refer it to a multi-judge bench.

Petitioners, led by Busia Senator Okiya Omtatah, are challenging the legality of the KPC privatisation.

CAK Dismisses Airtel Complaint Over Safaricom's Discounted Call Rates

The Competition Authority of Kenya (CAK) has dismissed Airtel Kenya's complaint accusing Safaricom of predatory pricing through discounted voice call promotions. 

Airtel argued Safaricom charged as little as Ksh0.10 to Ksh0.30 per minute, below the Ksh0.41 mobile termination rate, harming competition. 

However, CAK ruled the promotion complied with regulations, noting telecom operators are allowed to run discounted offers for up to 90 days before pausing them for three months. The watchdog found no breach of competition laws and closed the case.  Read more

Stanbic and Equity Bank Make New Appointments, New CEO

Stanbic Bank Kenya has appointed Michael Mutiga as its new Chief Executive, effective August 1, 2026, subject to regulatory approval.

As reported by the Business Daily, Mutiga served at Safaricom as Chief Business Development & Strategy Officer. He brings more than 20 years of leadership experience across banking, telecommunications and digital financial services.

He succeeds Abraham Ongenge, who has served as Acting Chief Executive since March 1, 2026, and will return to his substantive role as Head of Private & Personal Banking.

Meanwhile, as reported by Capital Business, Kenya Private Sector Alliance (KEPSA) CEO Carole Kariuki has been appointed to the Board of Equity Bank Kenya. She will continue serving as an Independent Non-Executive Director at the Nairobi Securities Exchange (NSE). The NSE welcomed her appointment, saying her leadership, strategic insight and policy advocacy experience will strengthen Equity Bank's governance.